The changes we’ve seen in our economy over the past few months have initiated a wave of changes in consumer psychology. And as real estate professionals, it’s important that we are all sensitive to the changes in consumer sentiment that are taking place.
There’s a new thriftiness in America today, and it’s going to change the way people shop for cars, consumer goods and houses. Gone are the days of “more is better”.
Along with a heightened commitment to renewable resources and the environment, consumers today are shifting their focus toward practicality. Those builders who are still in business are re-examing their models, with many moving toward smaller, more efficient floorplans without the opulence we saw between 1995 and 2005.
We’re also seeing the demise of many industries that rode the coattails of America’s equity boom. Gone are many chain restaurants and neighborhood diners – and the jobs that came with them.
Expect to see a greater emphasis on “cocooning” – of people staying at home to cook, to entertain, and to be entertained. You’ve heard the term “stay-cation- it’s sure to become a buzzword over the next few years.
Coupons are back. Bling is out. Practicality is in. For the consumer, it’s about value, value, value.
If we are to become “armchair vacationers”, that high-def TV for the living room might just be the smartest purchase you make this year.
This does not mean that economy is going to stop. It means that our economy is going to change, and those changes will be driven by new demands and new consumer patterns.
As real estate professionals, it may mean re-training our eye to spot different kinds of value. That four car garage may not be as important as it was a few years ago. The condition of the roof may be a bigger consideration that the location of the outdoor barbecue.
Americans are a resilient bunch and we have always adapted to change.
We will adapt again, and we will emerge from this time stronger and more grounded than we have been. There’s still no finer place to be, and no place with brighter prospects for the future.
There’s a new thriftiness in America today, and it’s going to change the way people shop for cars, consumer goods and houses. Gone are the days of “more is better”.
Along with a heightened commitment to renewable resources and the environment, consumers today are shifting their focus toward practicality. Those builders who are still in business are re-examing their models, with many moving toward smaller, more efficient floorplans without the opulence we saw between 1995 and 2005.
We’re also seeing the demise of many industries that rode the coattails of America’s equity boom. Gone are many chain restaurants and neighborhood diners – and the jobs that came with them.
Expect to see a greater emphasis on “cocooning” – of people staying at home to cook, to entertain, and to be entertained. You’ve heard the term “stay-cation- it’s sure to become a buzzword over the next few years.
Coupons are back. Bling is out. Practicality is in. For the consumer, it’s about value, value, value.
If we are to become “armchair vacationers”, that high-def TV for the living room might just be the smartest purchase you make this year.
This does not mean that economy is going to stop. It means that our economy is going to change, and those changes will be driven by new demands and new consumer patterns.
As real estate professionals, it may mean re-training our eye to spot different kinds of value. That four car garage may not be as important as it was a few years ago. The condition of the roof may be a bigger consideration that the location of the outdoor barbecue.
Americans are a resilient bunch and we have always adapted to change.
We will adapt again, and we will emerge from this time stronger and more grounded than we have been. There’s still no finer place to be, and no place with brighter prospects for the future.
