The real estate market has been on a bumpy road since 2008, and the economy came along for the ride. As a result, advertising has suffered. But things are looking up with both the real estate market and advertising. In New York, the rebuilding from Superstorm Sandy in particular is fueling the fire. This presents a great opportunity for New York Market Radio.
According to the Commerce Department, new home sales rose nearly 20% in 2012, and are at their highest level since 2009. Although new homes account for just 20% of the entire housing market, they are an important driving force for the economy. New homes mean new jobs.
The National Association of Home Builders reports that each new home creates three jobs for a year. An increase in employment leads to an increase in consumer spending power. However, the economic impact goes far beyond increased employment. Many sectors rise as new home construction climbs.
First, let’s take a look at the radio usage of new home buyers. In the New York metro, 36% of Adults 18+ who are planning to buy a newly constructed home in the next year fall into the quintile of heaviest radio listening. In fact, future new home buyers are 87% more likely to be the heaviest radio listeners compared to the average New Yorker. Comparatively, only 9% fall into the lightest radio quintile, indexing at 45.
New home sales mean mortgages. Banks and other financial institutions need to get the word out to these new home buyers that they are the right place to finance that new home. This category is especially important to the neighborhood bank with local roots. Radio performs strongly with those who have mortgages and home improvement/home equity loans. For example, 22% of New York Adults 18+ who live in a household with a home mortgage fall into the heaviest radio listening quintile, indexing at 114 compared to the market average.
New home buyers will need to buy furnishings, appliances, and electronics to fill their homes. These types of personal durable goods are prime for growing their advertising expenditures in 2013. For example, 23% of New York Adults 18+ living in a household that is planning to buy an energy-saving appliance in the next year are heavy radio users, indexing at 117 compared to the market average.
So far we’ve been talking about new homes, but let’s not forget all those people in existing homes who are looking to upgrade. New Yorkers who are planning to do various home improvements are heavy radio listeners. For example, 27% of New York Adults 18+ whose households are planning to replace or repair their roof in the next year are heavy radio listeners. This group is 39% more likely to be heavy radio listeners compared to the market average.
New York Market Radio is a great place to reach consumers who are spending money on home-related products and services! Work with your radio station account managers to utilize the local market qualitative information available for the variety of home-related categories available.