While the current housing market remains challenging in many regions, the upper tier continues to show its resiliency. Moreover, affluent homeowners typically continue "investing" in their homes even if not in the market to buy or sell a residence. During the four quarters ending October 2006, Harvard University's Housing Studies Center estimated that homeowners spent $160 billion in home improvement, a 1.6% increase over the prior 12 months, with kitchens and bathrooms topping the list. While that represents a slight decline from the long term growth rate of 5%, Kermit Baker, director of the Harvard center, believes there is potential for growth among the wealthy.
With fewer financial constraints, these ultra consumers have a greater range of choices. So what trends have emerged from recent selections they have made?
Increasing ecological awareness
One of the most notable overall trends reflects an increasing ecological awareness. Green has come into its own - but this generation's interpretation is a sophisticated one. According to the American Society of Interior Designers (AISD) sustainable design is considered to be the fastest growing trend in the industry.
Motivations may be economic (making a potentially expensive up-front investment in exchange for energy savings and more control over their energy destiny in years to come), aesthetic (installing a geo-thermal heating and cooling system which is hidden underground, rather than unsightly box on the side of the house), health related (using chemical-free building materials), or related to social consciousness (using recycled and renewable materials). These eco-choices may be manifested anywhere throughout the home, ranging from selecting alternate energy sources, using non-polluting and chemical-free building materials, employing water conservation methods, installing energy efficient windows, doors and insulation, and even choosing the type of wood for kitchen cabinets and hardwood floors.
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