Home Purchases Heighten Consumer Spending
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.