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Factoids

Factoids offer brief snapshots of current topics pertinent to the Furniture industry based on our on-going research. Increase your grasp of current trends, consumer attitudes, and shifts within the industry through solid statistics and concise insight.

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Factoids

The Housing Market through the Recession to Today: New Home Sales and Housing Starts


 

This is the second in a series of five factoids detailing the Housing Market’s recovery from the Recession and the potential for growth in both the Housing and Furniture Industries. As a whole, the Housing Market has made great strides in the last few years to recover from the Great Recession.

 

While Existing Home Sales were hit hard by the Recession, Housing Starts and New Home Sales both took staggering dives after 2007. New Home Sales plummeted 60 percent from 2007 to 2011. Sales have climbed a yearly average of 13.9 percent since bottoming out– totaling 512,000 in 2015. Although New Home Sales grew 67.3 percent from 2011, they are still 33 percent below the 2007 total of 769,000.

 

Like New Home Sales, Housing Starts have not caught up to 2007 levels mainly due to lack of inventory and cautious builders. After 2007, Housing Starts began falling 58.7 percent before hitting bottom in 2009. From 2009, Starts have increased 91.5 percent, but are still 20.9 percent below the peak of 2007.




Source: U.S. Census Bureau


The Housing Market through the Recession to Today Existing Home Sales


 

This is the first in a series of five factoids detailing the Housing Market’s recovery from the Recession and the potential for growth in both the Housing and Furniture Industries. As a whole, the Housing Market has made great strides in the last few years to recover from the Great Recession. While Existing Home Sales have surpassed pre-bust levels, Housing Starts and New Home Sales have made substantial but slower gains.

 

The bubble burst on Existing Home Sales in 2008 dropping 19 percent from 5 million in 2007 to 4.1 million. Since 2008, the amount of existing homes sold has increased by 25 percent up to 5.1 million in 2015 year-to-date. If the housing market stays on course this year, Existing Home Sales will finally surpass 2007 levels.

 

Although there has been a lot of fluctuation month to month over the past 3.5 years, purchasing of existing homes has increased 22.5 percent since January 2012. Sales tend to be higher in the summer and jumped 9.6 percent June 2015 from the previous June.



Source: U.S. Census Bureau


The Future of the Housing Industry: Median Monthly Gross Rental Rates 2010 to 2015 YTD


This is the sixth in a series of six Factoids exploring the future of the Housing Industry. The housing market has picked up steam over the last two years in terms of both existing home sales and new housing starts and a shift in the demographics of available homebuyers should spur more growth in the next 10 to 20 years.

Housing prices and apartment rental rates have been on a spiraling upward trend in many parts of the country. Housing prices (as shown in Factoid #5 of this series) are up 32% from 2009 to 2014.

The apartment market is being flooded with Millennials. The rapid jump in home prices over the past few years is adding to a rising rental market as many potential home buyers are turning to apartments and other rental housing. Monthly rent rates have increased from $1,042 in 2010 to $1,239 in 2015 year to date – a jump of 19 percent. Over the last five years, rates on rentals have increased an average of 3.5 percent a year.

 



Source: Zillow Real Estate Market Report, Zillow Rent Index (ZRI)

 

The Future of the Housing: Industry Median Home Prices

This is the fifth in a series of six Factoids exploring the future of the Housing Industry. The housing market has picked up steam over the last two years in terms of both existing home sales and new housing starts and a shift in the demographics of available homebuyers should spur more growth in the next 10 to 20 years.

As Millennials age into their home buying years, the question will become, “Will they be able to afford a home?” Housing prices and apartment rental rates have been on a spiraling upward trend in many parts of the country. If rates continue to grow faster than wages, buyers and renters will be facing housing’s ever-growing demand on their incomes which in turn impacts their ability to not only buy furniture, but all consumer goods and services.

This Factoid shows the rising cost of home prices from 2002 to 2014. At the peak of the housing bubble in 2007, the median price of a home was $244,950. With the subsequent housing market crash, the price fell 12 percent to $215,650 at the bottom of the recession in 2009. Since 2009, housing prices have climbed dramatically higher than pre-Great Recession days – up 32 percent in 2014 at $284,825. Median home prices have increased an average of 8.2 percent a year since 2011.

In the next and final factoid of this series, we will take a look at the rising cost of rent for Millennials.  

Source: U.S. Census Bureau 

The Future of the Housing Industry : The Aging of Baby Boomers: A Rising Need for Senior Housing Years 2000 to 2025


 

The housing market has picked up steam over the last two years in terms of both existing home sales and new housing starts and a shift in the demographics of available homebuyers should spur more growth in the next 10 to 20 years.

 

This Factoid illustrates the growing need for senior housing based on the dramatic increase in the population of seniors from 2000 to projected 2025. Over the span of 25 years, the number of persons ages 65 to 79 is projected to have increased 95 percent. Population projections show ten years from now, Age Group 75 to 79 will grow 62 percent, while Age Group 70 to 74 climbs 47 percent and people in their mid to late 60s will increase by 26 percent.

 

The Housing Market through the Recession to Today



As the Housing Industry collapsed after 2007, Apartment rentals shot up and continue to rise due to a low inventory of homes as well as the vast amount of Millennials currently in their late teens and early twenties. Apartment rents have increased 20 percent from 2007 to 2015 Q1 with an average yearly growth of 2.3 percent.

 

With the number of apartment rentals on the rise, the Vacancy Rate has plummeted. Dropping an average of 7% a year since 2009, the Vacancy Rate has decreased a total of 35.8 percent – down to 6.8 in 2015 Q2.

 

The jump in apartment rentals over the last eight years is in huge part  due to the core of Millennials aging into Age Group 20 to 24 (prime renting years).

The amount of early twenty year olds increased from 21.1 million in 2007 to 22.9 million in 2014 – a growth of 9 percent.

The Future of the Housing Industry: Projected Populations of Millennials by Age Groups Years 2015 and 2025



This is the second in a series of six Factoids exploring the future of the Housing Industry. The housing market has picked up steam over the last two years in terms of both existing home sales and new housing starts and a shift in the demographics of available homebuyers should spur more growth in the next 10 to 20 years.

 

This Factoid shows both the age groups of the current Millennial population and what age groups the Millennials will be in 2025. In 2015 the highest population of Millennials falls into Age Group 20 to 24 with 22.7 million people, while Age Group 24 to 29 is only slightly smaller at 22.5 million. Millennials are just starting to age into their home buying years with 21.7 million in Age Group 30 to 34.

 

Over the next decade, the youngest of the Millennials will be leaving college and entering the rent/housing market and the oldest will be in their early 40s and often upgrading housing. Age Group 30 to 34 (mainly first time home buyers) is projected to increase 12.9 percent - from 21.6 million to 24.5 million, while the population of 25 to 29 year olds (prime renting age) shows a slight growth of 2.8 percent. Ages 35 to 39 and 40 to 44 are expected to increase 15.9 percent and 10.5 percent as the older Millennials age into a traditional period of housing upgrades.

The Future of the Housing Industry - Homebuyers of the Future: Millennials and Baby Boomers 2015, 2020, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


This is the first in a series of six Factoids exploring the future of the Housing Industry. The housing market has picked up steam over the last two years in terms of both existing home sales and new housing starts and a shift in the demographics of available homebuyers should spur more growth in the next 10 to 20 years.

This year, the Millennials are expected to surpass the Baby Boomers and become the largest living generation. The Millennials are generally defined as children of the Baby Boomers born between the early 1980’s and the early 2000’s. The oldest Millennials are entering their 30s and the youngest still pre-teen. Over the next 10 to 20 years, Millennials will pour into the housing and apartment markets and many of the Baby Boomers (currently ages 51 to 69) will be downsizing to smaller homes, single-family retirement communities, or group housing.

The population will grow and change over the next ten years with the surge of Millennials and the skyrocketing of Baby Boomers in the over 65 age group. Boomer growth over 65 will total 37.8% - increasing at a rate of 3.3% a year from 2015 to 2025.

The next factoid of this series will show in further detail the projected pouring of Millennials into home buying age groups over the next decade.

Source: U.S. Census Bureau, Projections of the Population of the U.S

 

 

Industry Sales 2007 to 2015 Q2 YTD - Furniture & Bedding



2015 Q2 year to date totaled $45.23 billion, an increase of 5.4 percent over the first two quarters of last year. Industry sales are on pace to finally reach or surpass peak pre-recession totals.

Industry Growth Quarter to Quarter 2011 to 2015 Q2 Furniture & Bedding



The chart above shows quarter-over-quarter industry performance from 2012 Q2 through the second quarter of 2015.

Second quarter combined Furniture and Bedding industry sales of $22.96 billion were a 5.2 percent improvement over $21.83 billion from the same quarter in 2014. Compared to last quarter (2015 Q1) sales improved 3.1 percent

Furniture (excluding Bedding) increased 5.2 percent in 2015 Q2 versus the same quarter last year with sales of $19.67 billion – up from $18.7 billion in 2014 Q2.

 Bedding continued steady quarter-over-quarter growth with sales of $3.28 billion, up 4.9 percent over second quarter sales last year.

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