Numbers can be funny things. When the population for a subset of consumers is large enough, then plausible projections follow about how that group will impact macro economics.
Affluent Americans Eye Nearly 1 Million Homes
About 5% of the wealthiest 10% of U.S. households planned to buy or build a primary residence by March 2003, according to a March 2002 study by the American Affluence Research Center.
About 5% of the wealthiest 10% of U.S. households planned to buy or build a primary residence by March 2003, according to a March 2002 study by the American Affluence Research Center. That’s the equivalent of almost 520,000 housing units.
Additionally, the Spring 2002 Study of Affluent Americans found that 4.6% planned to buy or build a vacation home, representing 460,000 housing units.
Nearly 75% of the respondents had a household net worth of $500,000 to $2 million. More than 80% lived in the Northeast, North Central and West regions, 62.1% are male, and 58.1% were in the 40-59 age group.
The study also measured the “psychology” of affluent consumers and found that while some liked to be innovators or early adopters, 85% preferred “well-established brands and products.”
The survey report provides a good, extensive picture of the current mood of the affluent consumer, and how they expect to save and spend over the next 12 months,” says Howard Waddell, managing director of the AARC. “This can be helpful in preparing sales forecasts and business or marketing plans. Over time, the trend data derived from the surveys will make the information even more helpful.”
The survey is the first in a semiannual series. Visit www.affluenceresearch.org or call the AARC at 305/665-5168 for more information.