How home buyers tend to spend

According to a recent Consumer Expenditure Survey conducted by the U.S. Bureau of Labor Statistics and the National Association of Home Builders, home buying typically generates a wave of activity as people who purchase homes spend money on improving their homes, installing new appliances, buying furnishings and other items.

NAHB’s analysis shows that a home purchase triggers a series of additional spending on appliances, furnishings and remodeling activities that exceed typical spending levels of non-moving owners and persist for two years after moving. Specifically, the NAHB analysis shows that during the first two years after closing on the house, a typical buyer of a new single-family detached home tends to spend on average $7,400 more than a similar home owner who does not move, including $4,900 in the first year after purchase. Likewise, a buyer of an existing single-family detached home tends to spend about $4,000 more than a similar non-moving home owner, including $3,600 during the first year.

The biggest outlay in the budget of new home buyers is furnishings. New home owners spend an average of $5,288 on furnishings during the first year after buying home, outspending buyers of existing homes 2.2 times and non-moving owners 5.3 times.

Total appliance spending is highest for new home buyers, at an average of $2,769, compared with $1,919 for existing home buyers, and $1,065 for non-moving owners. Moreover, new home buyers outspend non-moving owners on every single appliance item listed in the CES. They also tend to outspend existing home buyers across almost the entire range of appliances.

Getting caught up in the thrill of a new home is no doubt exciting, and the desire to get your decor "just so" is so very tempting. Remember, you've taken your time to find the perfect home - a home that you will have years to furnish. Take your time deciding on new purchases and enjoy the process of tailoring your home to suit you and your family for years to come.