December 22,
2017 by Jane Chero in General 
The top 20 percent of all households make over half (52.8 percent) of all income and pay 78.5 percent of all taxes. This still leaves these households who make over $105,600 per year with 48.6 percent of all disposable income. This is the second factoid in a series of four factoids that details the annual mid-year Consumer Expenditure Survey report (mid 2015 to mid 2016) by the Bureau of Labor Statistics. The report divides the 129 million households in the U.S. into 20 percent quintiles of around 25.8 million consumer units each from the lowest to highest earners. There are distinct household characteristics that separate the income levels.
Most notable is that the higher the income level, on average the more people in the household. The highest 20 percent have almost double the number of people (3.1 persons on average) compared to 1.6 persons on average in the lowest 20 percentile. This reflects the higher income concentration of married couple families. The top 20 percent also have on average 2.0 earners while the lowest earning households have 0.5 earners. Also, the lower the household income, the higher concentration of individuals over 65 years and the fewer the number of children. The highest income households have on average three vehicles, compared to less than one for the lowest group. All of these characteristics contribute to the things consumers buy for their households in junction with their ability to pay.
Essentials like food, shelter, utilities, gasoline, and healthcare eat up much of the income of lower income families, leaving less disposable income for non essentials. The percent of income being spent on most essential goods or services declines as the income brackets increase. As expected, Shelter consumes the greatest portion of each income bracket – at 17.5 percent for the highest earners on up to 25.1 percent for the lowest. While households with more money spend a smaller share of income on essentials, the amount of money spent is much greater. For those in the lowest 20 percent, an average expenditure of food is $3,651 at 15.1 percent of their earnings, while the highest 20 percent on average spends $12,646 – just 11.3 percent of income. For Furniture and Equipment, all levels of income still spend between 2.6 percent to 3.3 percent of their incomes.
Source: Bureau of Labor Statistics, Consumer Expenditure Survey, Mid-year Report 2015 to 2016
December 17,
2017 by Jane Chero in General
The top 20 percent of all households make over half (52.8 percent) of all income and pay 78.5 percent of all taxes. This still leaves these households who make over $105,600 per year with 48.6 percent of all disposable income.
This is the first factoid in a series of four factoids that details the annual mid-year Consumer Expenditure Survey report (mid 2015 to mid 2016) by the Bureau of Labor Statistics. The report divides the 129 million households in the U.S. into 20 percent quintiles of around 25.8 million consumer units each from the lowest to highest earners. Not surprisingly, the majority of income earned before taxes along with the tax money generated and disposable income after taxes belong to households in the top quintile.
Over three-fourths (75.4 percent) of total income comes from the top two quintiles. The average income for the highest 20 percent is $192,051 before taxes and the second 20 percent of average $82,561. The remaining three income segments make up 60 percent of U.S. households and earn less than $63,800. They account for under a quarter (24.5 percent) of all household income.
The majority of tax dollars, 78.5 percent, comes from the top income segment (Table B). And although the highest earning households pay on average 20.6 percent of their income to taxes, their share of total U.S. income after taxes is still at 48.6 percent, down from 52.8 percent before taxes. Paying roughly 10 percent of income to taxes, the fourth 20 percent quintile has an average of $73,827 of income after taxes – maintaining 23.5 percent share of all disposable income. After taxes, the bottom three earning households bumped up to 28 percent of total disposable income but much of it will be swallowed by the essentials like food, shelter and healthcare. The next factoid will focus on characteristics of the income groups and how they spend money on essential items.
Source: Bureau of Labor Statistics, Consumer Expenditure Survey, Mid-year Report 2015 to 2016
December 8,
2017 by Jane Chero in General
Once a country on the move, mobility reached a historical low from 2015 to 2016 with only 11.2 percent of the population moving to a different home or apartment. This compares to a 1948 peak of 20.3 percent. The third and final factoid series on Mobility in America looks at where people are moving. Are more movers simply relocating to a nearby apartment or home? Is there migration into the cities from the suburbs? Are some more people moving to sunshine states? The final factoid in this series focuses on migration among the four U.S. regions.
Overall the sunshine states in the South and West had the most movers from 2015 to 2016. The South had the highest flow of people in and out of the region with Inmigrants and Outmigrants both over 900,000 people. (See definitions below.) At 247,000 persons, the West had the most Net Internal Migration, with the South leading the way in total Net Migration (including movers from abroad).
The second chart shows the Net Internal Migration of movers (current residents moving within the country) over the last five years. Between 2012 and 2015, the South had on average the greatest net increase in population from movers each year. However in 2015-2016, the West took over adding 247,000 additional people compared to 39,000 for the South. The Net Internal Migration in the Northeast and Midwest has been either null or negative for many years with more people leaving than moving in.
Movers from abroad relocate into all regions of the country. However, the South has been the greatest beneficiary over the last five years with 497,000 movers from 2015 to 2016.
Source: U.S. Census Bureau, Current Population Survey 2016
December 1,
2017 by Jane Chero in General
Once a country on the move, mobility reached a historical low from 2015 to 2016 with only 11.2 percent of the population moving to a different home or apartment. This compares to a 1948 peak of 20.3 percent. The third and final factoid series on Mobility in America looks at where people are moving. Are more movers simply relocating to a nearby apartment or home? Is there migration into the cities from the suburbs? Are some more people moving to sunshine states? The third factoid in this series focuses on migration in and out of cities and suburbs and mobility among owners versus renters.
Despite the perception that inner cities are increasing in desirability the data reflects differently. Actually a yearly average of 1.5 million movers have left Principal Metropolitan cities (urban areas) since 1985 while Metropolitan suburbs keep growing – increasing by an average of 2.9 million movers a year.
When it comes to the distance a homeowner moves versus a renter, it might be surprising to some is that the geographical mobility patterns among both renters and owners are very similar. At 60.7 percent owner-occupied units and 61.7 percent renter-occupied, the vast majority of movers in both housing types moved within the same county from 2015 to 2016. A higher percentage of homeowners moved to a different county within the same state (25.2 percent) versus 19.7 percent of movers that rented in the same year. Not surprisingly, movers from abroad account for a higher percentage of renter-occupied units (4.9 percent) rather than owner-occupied units (1.9 percent).
Source: U.S. Census Bureau, Current Population Survey 2016
(1) Nonmetro areas included Micropolitan Statistical Areas and rural countries
November 24,
2017 by Jane Chero in General
Once a country on the move, mobility reached a historical low from 2015 to 2016 with only 11.2 percent of the population moving to a different home or apartment. This compares to a 1948 peak of 20.3 percent. The third and final factoid series on Mobility in America looks at where people are moving. Are more movers simply relocating to a nearby apartment or home? Is there migration into the cities from the suburbs? Are some more people moving to sunshine states? The second factoid in this series focuses on migration to Metro and Nonmetro Areas.
In general, the majority of movers tend to move within the same area or type of area with movers from nonmetro areas somewhat more likely to leave for the big cities. Conversely, Only 3.5 percent of the metro movers left urban life for the country or smaller towns (nonmetro areas) from 2015 to 2016. However, 27.3 percent of movers living in non metro areas left for a metropolitan area. The small percentage of immigrants overwhelmingly chose metro areas, 93.8 percent.
As expected, metro areas have the most movers by far, with 64 percent of movers electing to stay within the same metropolitan area. At 16.7 percent, the next highest group of movers traded one metro area for another metro area between 2015 and 2016, while 9.3 percent of movers continued to reside in a nonmetro location.
Source: U.S. Census Bureau, Current Population Survey, 2016 Annual Social and Economic Supplement (1) Nonmetro areas included Micropolitan Statistical Areas and rural counties
November 17,
2017 by Jane Chero in General
Despite the dramatic decline in the percent of Americans moving and changing residences over the last 60+ years, the patterns of mobility have shifted much less than might be expected. Once a country on the move, mobility reached a historical low from 2015 to 2016 with only 11.2 percent of the population moving to a different home or apartment. This compares to a 1948 peak of 20.3 percent. The third and final factoid series on Mobility in America looks at where people are moving. Are more movers simply relocating to a nearby apartment or home? Is there migration into the cities from the suburbs? Are some more people moving to sunshine states? The first factoid in this series focuses on mobility by year and the how far movers have relocated.
While the percent of Americans moving has changed overtime, how far away they tend to move has not. Looking at the last 28 years, in 1987, 17.8 percent of the population moved compared the 11.2 percent from 2015 to 2016. Since that time, a slightly higher percentage of movers are moving to a different county within the same state – an increase from 18.3 percent (1987) to 21.3 percent (2016). Meanwhile, while fewer movers are relocating to a different state – down from 16.7 percent to 13.6 percent.
Both long distance and shorter nearby moves have fallen by similar rates over the past 60+ years. Between 2015 and 2016, 61.6 percent of all movers relocated within the same county compared to 67 percent in 1948. Of the total population, just 6.9 percent of Americans made shorter moves last year within the same county, down from 13.6 percent in 1948. Different county and out of state moves dropped to just 3.9 percent of the total population in 2016.
Source: U.S. Census Bureau, Current Population Survey, Annual Geographical Mobility Rates, by Type of Movement 1948-2016
November 3,
2017 by Jane Chero in General
The furniture and bedding industry picked up a little steam in the third quarter with furniture and bedding sales up 4.11 percent over the same quarter last year, 2016 Q3. Industry sales of $25.42 billion received a slight bump at the tail end of the quarter as Hurricane Harvey victims began the process of replacing furniture in heavily impacted areas. Compared to the previous quarter of this year, 2017 Q2, third quarter industry sales were up 3.05 percent. Third quarter year-to-date furniture and bedding sales reached $74.29 billion, up 3.22 percent over the same period last year.
Furniture (excluding Bedding) in the third quarter increased 3.97 percent versus the same quarter in 2016 totaling $21.38 billion. Compared to the second quarter of this year, furniture sales grew a modest 1.82 percent. Year-to-date furniture sales excluding bedding reached $62.92 billion, up 3.12 percent over the first three quarters of last year.
The Bedding industry also saw a larger increase, with estimated sales of $4.04 billion for the third quarter, up 4.83 percent over the same quarter last year. The third quarter is typically bedding’s highest volume period. Compared to the previous Q2 of this year, industry sales were up 9.9 percent. Year to date, bedding sales increased 3.77 percent over the first three quarter of last year totaling $11.37 billion.
The third quarter this year saw the largest quarter over quarter growth in six quarters for furniture and bedding. Industry sales increased 4.11 percent over the third quarter of last year, breaking the $25 billion one quarter dollar mark. Compared to the previous Q2 of this year, sales of $25.42 billion were up 3.05 percent.
Furniture (excluding Bedding) increased 3.97 percent in 2017 Q3 versus the same third quarter of 2016 with sales of $21.38 billion. This figure was up 1.82 percent over last quarter, 2017 Q2.
Bedding 2017 Q3 sales totaled $4.04 billion, up 4.83 percent over third quarter last year and 9.9 percent over the previous second quarter of this year. The third quarter is typically bedding’s highest volume quarter each year.
October 27,
2017 by Jane Chero in General
This is the final factoid in a series of four factoids detailing the growth of consumer spending since the recession. Although Healthcare spending still leads the way, Durable Goods, including Furniture and Home Furnishings products, have steadily increased their share of post-recession consumer dollars since 2009.
After a gradual post-recession recovery, consumer spending continues to grow an average of 3.8 percent a year since 2009. According to the Bureau of Labor Statistics’ Personal Expenditures Survey, Consumer Spending by U.S. Households totaled $12.76 trillion last year – increasing 3.9 percent from 2015.
In this first quarter of this year at a seasonally adjusted annual rate, Consumer Spending on furniture alone totaled $109.7 billion dollars. Major appliances is the second largest home furnishings spending category at $41.4 billion.
Although window coverings is the smallest of the home furnishings categories, it has experienced the largest post-recession surge in consumer spending increasing 42.1 percent. Carpets and other floor coverings have surged since 2015 with a total 32.2 percent growth since 2009. Both furniture and home furnishings accessories also experienced over 30 percent growth post-recession at 31.8 and 31.7 percent growth respectively.
Source: Personal Consumption Expenditures, Bureau of Labor Statistics
*Seasonally Adjusted at Annual Rates (SAAR)
October 20,
2017 by Jane Chero in General
This is the third factoid in a series of four factoids detailing the growth of consumer spending since the recession. Although Healthcare spending still leads the way, Durable Goods, including Furniture and Home Furnishings products, have steadily increased their share of post-recession consumer dollars since 2009. This is despite the fact that last year for the first time Americans spent more money on health care than the total amount spent on living in and taking care of their homes -- $2.95 trillion versus $2.91 trillion.
Since the end of the 2009 Recession, household insurance has surged as the fasted growing housing expense – up 67.8 percent but tapering off over last year. Both furniture and home Furnishings have maintained a steady upward trajectory – averaging 3.5 percent and 3.7 growth each year, but still lag slightly behind overall consumer spending growth of 3.8 percent. Televisions and appliances have been outpaced by other household spending. Household utilities have stabilized with little increase.
As Americans are staying put longer, household maintenance spending has grown 29.2 percent over the last five years. Last year, rents and mortgages saw a high growth of 4.7 percent as supply tightened in many areas. Consumer spending slowed during the first quarter of this year in all household spending categories, except televisions/video and audio.
Source: Personal Consumption Expenditures , Bureau of Labor Statistics
*Seasonally Adjusted at Annual Rates (SAAR)
October 13,
2017 by Jane Chero in General
This is the second factoid in a series of four factoids detailing the growth of consumer spending since the recession. Although Healthcare spending still leads the way, Durable Goods, including Furniture and Home Furnishings products, have steadily increased their share of post-recession consumer dollars since 2009.
With Healthcare last year finally exceeding total Housing expenditures, including furnishings and maintenance, the trend is on track to continue this year. Total combined Housing and Home Furnishings expenditures lost 1 point share of all spending since 2009, mainly through declining utility expenses and slow to recover rents early in the recovery. Home furnishings products have generally held consumer spending share with the exception appliances and televisions. Meanwhile Healthcare has increased its share 1.5 points in the same time period – up to 22.5 percent of total spending the first quarter of this year. Total consumer dollars spent on housing and furnishings trailed closely at 21.6 percent in 2017 Q1. Meanwhile Americans are eating out more, with corresponding spending on food consumed at home declining.
Rents and mortgage payments make up 73 percent of consumer spending on housing, while the biggest chunk of healthcare was paid to hospitals (7.9%) and outpatient services (7.8%). Actual medical health insurance totaled 1.3 percent of consumer spending.
Source: Personal Consumption Expenditures, Bureau of Labor Statistics *Seasonally Adjusted at Annual Rates (SAAR)