New Residential Construction Declines, Furniture Industry Improves
2018 by Laurie Northington in General
The furniture industry, which is heavily influenced by the ups and downs of the housing market, may have temporarily turned a blind eye to the poor economic news released this week on new housing construction. According to second quarter data soon to be released by Impact Consulting Services Inc.’s FurnitureCore.com market model, the furniture industry is beginning to show some much needed signs of life despite the housing shortage. Impact Consulting Services, Inc. is also the parent company of HFB Magazine.
Meanwhile results from FurnitureCore.com’s quarterly industry market model next week are expected to report Furniture and Bedding sales for the second quarter of this year up over 8 percent compared to the same quarter last year.
Dismal news was evident on new residential construction for June compared to May 2018 according to data released this week by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. Of the three key indicators from this report, data from May to June show Housing Starts down 12.3 percent, Building Permits down 2.2 percent, and Housing Completions flat.
The June issue of HFB Magazine’s Statistically Speaking article noted that “critically low inventories and subsequent skyrocketing home prices and rental rates are locking out new home buyers and stymieing moves at a time when the economy is growing, employment is high, and Millennials are fully entering their home buying years.” It remains to be seen if sustained furniture industry growth can continue in spite of the housing shortage and the economic realities of furniture buyers.