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Thursday, June 21, 2012

UPDATE on “Merged Households”

Trend Observation:  Let me revisit the story I published just a few moments ago [see “Merged Households” immediately below].  The Washington Post story I cited goes on to include this observation:  Economists estimate that there are more than 2 million fewer occupied homes in the country than there would have been had Americans continued forming households at the rate they did before the recession. The slowdown has lowered demand for housing as well as for furnishings and appliances, placing a further drag on the economy.”

Marketing Implications:  Let’s focus on the fact that the story is talking about Census data with a window from 2007 through 2010.  So I’m wondering:  What happens when people living in a merged household decide their financial house is in sufficient order that they are ready to once again move out on their own?

The pent-up demand for home furnishings, home improvement—indeed, homes—could be amazing.

Are you watching the real estate market where you live (sell goods and services)?  If you sell appliances, home furnishings, or almost anything else that might fit into the traditional American home, you should be.  I may be stating the obvious, but jobs and housing will be a harbinger of sales opportunity in a lot of categories.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

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