flexiblefullpage
Currently Reading

Home Purchases Heighten Consumer Spending

Advertisement
billboard
Affordability

Home Purchases Heighten Consumer Spending

A new home purchase is followed by additional spending on furniture, appliances, and renovations, and those costs can quickly add up


June 7, 2022
Small wooden house model next to piggy bank
Image: Stock.adobe.com

During the first year after closing on a newly-built single-family detached home, the typical buyer spends $9,250 more on average than a non-moving homeowner, Eye on Housing reports. New home purchases also require significant spending on appliances and furniture, and even existing homes trigger expenses for remodeling.

The typical new-home buyer spends roughly $3,000 more on furnishings than homeowners who choose to stay put in their existing homes, while buyers of existing homes spend nearly $7,400 on remodeling projects in the first year after closing on a home purchase.

A typical new home buyer that buys a new home is estimated to spend almost twice as much on these projects ($9,288) compared to an identical household that stays put in a house they already own. A closer examination reveals that most of these extra spending is used on building outdoor features, such as patios, pools, walkways, fences, as well as landscaping and various additions to the new house.

Similarly, buying an older home triggers additional spending. The typical buyer of an existing home is estimated to spend $5,238 more on remodeling, furnishings, and appliances compared to otherwise identical homeowners that do not move. 

Read more

Advertisement
leaderboard2

Related Stories

Market Data + Trends

Why Is the Housing Market Behaving This Way?

2023 has been a confusing time in the housing market, but there's an upside for new-home builders

New-Construction Projects

How Elevated Mortgage Rates Are Affecting Housing Starts

While home builder confidence fell to a five-month low in September, persistent buyer demand could accelerate new-home construction in the months ahead

New-Home Sales

Amid Historically Low Existing-Home Inventories, Homebuyers Look Elsewhere

As existing housing inventory dwindles amidst a widespread affordability crisis, new construction makes up nearly half of all single-family homes in the for-sale market

Advertisement
boombox2

Top Articles

Advertisement
boombox1
Advertisement
native1
halfpage2

More in Category

COVID-19 may be easing its grip on the U.S. after a disastrous two years, but lingering supply chain disruptions have builders holding onto their pandemic business tactics

An archive of NHQA-winning companies that represent home building's best in Total Quality Management

Don’t let the current hype about single-family B2R communities obscure the need to create long-term sustainability and asset value

Advertisement
native2
Advertisement
halfpage1

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.