What's happening:
As the New Year is in full swing, many are taking a fresh look at their priorities and making plans to improve their daily lives. For homeowners, this means focusing on their living spaces, with most planning at least small updates in 2025 instead of buying a new home. Broader spending expectations also reflect a practical mindset, as people anticipate maintaining or reducing costs across most areas, while prioritizing essentials like utilities and groceries. These trends highlight a cautious yet forward-thinking approach as individuals balance aspirations with financial realities in the year ahead.
What we found:
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63% of homeowners plan to make at least minor updates to their homes this year, over half of which (55%) are projects they had previously postponed.
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Just 28% of respondents intend to buy a home this year. Even younger generations are not optimistic about buying their first home in 2025, with 19% of Gen Z planning to become first-time homeowners and 21% of Millennials.
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Aside from investing in their current home, people are expecting to cut back on overall spending this year. Over half are planning to spend the same or less on things like travel, goods and services, and subscriptions. The only exception to this is everyday expenses, such as utilities and groceries, where 79% predict they will be spending more or the same as 2024.
Why it matters:
These trends highlight a shift toward intentional and pragmatic consumer behavior, creating opportunities for brands to align with value-driven priorities. For home improvement, this means addressing homeowners’ demand for affordable, DIY-friendly updates or solutions that maximize functionality and longevity.
Beyond home projects, the focus on essential spending calls for brands across sectors to emphasize value and practicality. Messaging that underscores cost savings, durability, or tools to manage expenses can resonate with cautious consumers. By positioning themselves as partners in smart financial decisions, brands can build trust and foster loyalty in 2025.
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