During the depths of the recession, the new media hyped the concept of “the new normal” basically a readjustment concerning spending habits and plans for discretionary income which may be spent on vacations. So, as property managers and vacation homeowners, should you be concerned as we slowly climb out of this most recent economic downturn?

For many affluent consumers the “new normal” is not anything new. Most have been conscious concerning spending and have been aggressive savers. In one survey (see * below for demographic information), the majority of respondents advised “they will return to pre-recession levels of spending when the economy has recovered and they have recovered the recent losses in their net worth, which they estimate will take 18 to 24 months”.

* This report is based on the responses from 684 men and women in households with an average annual income of $300,000, an average net worth of $3.1 million, average investable assets of $1.6 million, and an average primary residence value of $1.2 million.

In tandem to the survey results noted above, The Conference Board’s Leading Economic Index™ (LEI) for the U.S. increased 0.3 percent in October, following a 1.0 percent gain in September, and a 0.4 percent rise in August. Says Ataman Ozyildirim, Economist at The Conference Board: “After half a year of consecutive increases, the month-to-month growth of the LEI is stabilizing and the gains continue to be broad-based. Meanwhile, the coincident economic index has been essentially flat since June, after declining since November 2007. The composite indexes suggest the recovery is unfolding and economic activity should continue improving in the near term.”