Biggest Expenditures for New Home Buyers
NAHB analysis of Consumer Expenditure Survey (CES) data from the Bureau of Labor Statistics shows that during the first year after closing on a home sale, home buyers tend to spend considerably more money on furnishings, appliances and remodeling compared to non-moving owners. Buyers of new homes spend four times as much as non-moving owners and twice as much as buyers of existing homes.
Alterations and repairs:
- New home buyers - $11,930
- Buyers of existing homes - $5,761
- Non-moving owners - $2,966
- New home buyers - $5,122
- Buyers of existing homes - $2,665
- Non-moving owners - $904
- New home buyers - $4,254
- Buyers of existing homes - $2,499
- Non-moving owners - $1,442
Although home buyers tend to spend considerably more on furnishings, appliances and property alterations compared to non-moving owners, most of the demand for appliances, furnishings and remodeling projects in a given year is generated by non-moving home owners, because they outnumber home buyers by such a wide margin.
Dr. Natalia Siniavskaia, NAHB assistant vice president for housing policy research, details popular items among these categories and helps explain spending behavior in this Eye on Housing post.