A new Citi survey offers positive signs for the home improvement sector. According to the bank, consumers indicated continued spending on projects and a growing preference for Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT) for home goods.
"Our survey results look positive on project intent and spending for the home," says analysts at Citi, which collaborated with the Citi Research Innovation Lab to survey some 1,500 consumers.
The survey found that 74% of respondents had completed a home improvement project in the past year, with 63% planning to undertake one in the next year. These figures are steady or slightly up compared to 2023.
The top reason for projects remains general repairs and upkeep, but there was a slight increase in those citing "preparing for sale" and "increasing the value of the property."
Encouragingly, spending on home improvement projects also rose slightly year-over-year, with respondents reporting an average of $10,677 spent in the past year. The biggest spending increase came from those in the $50,000 to $99,000 income bracket.
Looking ahead, 84% of respondents expect their home improvement spending to stay the same or increase over the next year. The survey projects a growth of 4.7% in spending compared to the previous year.
The survey also found a slight increase in the preference for hiring professional help, with 44% planning to do so this year compared to 41% in 2023.
However, the most notable change in the survey results is the surge in popularity of Amazon and Walmart as destinations for home improvement supplies and furnishings.
"Both AMZN and WMT saw big jumps in this year's survey," say analysts at Citi. This suggests these retail giants are capturing a growing share of the home improvement market.
The survey also found a continued preference for Home Depot (NYSE:HD) over Lowe's (LOW) for home improvement goods, with 62% favoring HD compared to 38% for LOW. This preference is slightly stronger than what was reported in 2023.