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U.S. Builders Pursue Digital Home Revenue

With 15 million U.S. households moving on average every year and 35 percent doing so primarily as an upgrade over their current residence, the population of moving households is a prime consumer segment for new digital devices and services, according to Parks Associates.

Parks Associates' new primary consumer study will identify what, how, and when relocating households purchase, relative to all other households. The project will survey 3,000 U.S. households, including households not moving in order to compare and contrast between these two different market segments.

In 2005 alone, 15 million households moved, representing 40 million people, and most were young adults aged 20-35. Further, U.S. households are increasingly purchasing new digital devices and services. According to Parks Associates' "2006 Builder Insights," an annual study of home builders, approximately 70 percent of home builders offer built-in speakers for multiroom audio systems, and these same builders installed them in one-half of the homes they sold in 2005. Over one-half of all builders offer electronics for home theaters and installed them in 23 percent of the homes they sold in 2005.

"These households represent a lucrative target for manufacturers, service providers, retailers, and home systems integrators, but to tap into this segment, one must first understand the different factors that motivate and influence these moving households," said Bill Ablondi, director of home systems research for Parks Associates. "We know new home buyers are including entertainment, security, and control systems when they choose amenities and upgrades. We will find out if the same is true of people moving into existing homes."

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