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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

Mobility in America Part 2 | What Motivates People to Move | Reasons to Move: Housing


With Mobility in America at an all-time historical low and only 11.2 percent of people moving from 2015 to 2016, what drives the current movers and leads them to change residence? This is the final factoid in series of four factoids that explores the “why” people have moved since 2000 and takes note of both the growing and declining trends.

After detailing  the other major reasons for moving, Family and Jobs, this factoid centers around Housing. Continuing the historical trend, the strongest reason for a household move for any reason is simply the desire to upgrade to a nicer apartment or home. These movers represented 17.4 percent of the total in 2015/2016, up from 14.8 percent of movers between 2009 and 2010.

After a slowdown during the Great Recession, the desire for renters to own their own homes is trending up. Bottoming out at 4.6 percent of movers from 2009 to 2010, changing residence in order to stop renting and purchase a home grew to 5.9 percent of movers from 2015 to 2016.  Other housing-related reasons for moves 2015 to 2016 included wanting cheaper housing (8.2 percent of movers) and a desire for a less crime ridden neighborhood (3.1 percent).

Source: U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement 

Mobility in America Part 2 | What Motivates People to Move | Reasons to Move:Jobs

With Mobility in America at an all-time historical low and only 11.2 percent of people moving from 2015 to 2016, what drives the current movers and leads them to change residence? This is the third factoid in series of four factoids that explores the “why” people have moved since 2000 and takes note of both the growing and declining trends.

Slow job growth this decade coupled with more conservative corporate transfer policies during recessionary times have kept people from moving for a new job or job transfer. However that trend is improving as only 7.8 percent of movers from 2009 to 2010 cited new jobs or transfers as reasons for moves, now up to 10.8 percent in 2016. Also on the rise is a desire to be closer to work and have an easier commute – up to 6.0 percent of movers from 2015 to 2016, almost double that of 2001. Other job related reasons for moves impacting less than 2 percent of movers included moving to look for work or after a lost job or retirement.

A person was more likely to make an employment-related move based on the type of job. Professional and Service jobs are geared toward mobility more than any other type of employment, representing 23.3 percent and 21 percent of job-related movers respectively. The next factoid in this series will focus on Housing as the leading reason for a household move.

Source: U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement

Mobility in America Part 2 What Motivates People to Move Reasons to Move: Family

With Mobility in America at an all-time historical low and only 11.2 percent of people moving from 2015 to 2016, what drives the current movers and leads them to change residence? This is the second factoid in series of four factoids that explores the “why” people have moved since 2000 and takes note of both the growing and declining trends.

The previous factoid gave an overview of the major broad categories of reasons to move; family, housing, and jobs. This factoid centers around family as a major reason for moving.

Both Divorce and Marriage rates have been on a steady decline since 2000 – lowering a “change in marital status” as a key reason for moving. Down from a divorce rate of 4.0 in 2000 (rate per 1,000 total population) to 3.2 in 2014, more people are staying married. On the flip side, less people are getting married – decreasing from a marriage rate of 8.2 in 2000 to 6.9 in 2014.

Luckily more people moved to establish their own households from 2015 to 2016 – up to 12.2 percent of all movers from 10.4 percent in 2016. Although slow to leave Mom and Dad’s home, more Millennials are venturing out on their own and forming households. This increase should continue steadily over next five years as Millennials age.

According to the National Association of Realtors, between 2008 and 2016 America added an average of 835,000 new households per year. For 50 years prior, it was 1.3 million per year.

Source: U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement

Mobility in America Part 2: What Motivates People to Move

With Mobility in America at an all-time historical low and only 11.2 percent of people moving from 2015 to 2016, what drives the current movers and leads them to change residence? This is the first factoid in series of four factoids that explores the “why” people have moved since 2000 and takes note of both the growing and declining trends.

Major Reasons to Move

For 42.2 percent of the 35.1 million movers from 2015 to 2016, the biggest reason to move continues to be a desire for new or different housing. Recovering from the recession, job related moves are back up to just over 20 percent of movers since 2006-2007. Meanwhile, over a quarter of American movers (27.4 percent) changed residence last year due to a change in family status

Age of Movers

Young adults ages 20 to 29 dominated all categories for reasons to move in terms of numbers of adult movers -- the principle reason for moving being housing-related (3.7 million movers). These young movers are starting new households, moving into their own apartments or homes or changing residences for various reasons.  Job-related moves also dominated this age group more than any other with 3.0 million moving for employment reasons.

For adults 30 to 44 (a 15-year age span), housing-related moves were by far more important than any other category (3.6 million movers) and almost double employment reasons.

Adults 45 to 64 (20 year span) are a large part of the U.S. population and contain a chunk of baby boomers on the back end. However these older adults were most likely to stay put with 2.4 million movers citing housing-related reasons for moves and only 1.1 million moving because of jobs.

Source: U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement

Series Factoid #4: Mobility In America Continues to Decline: Mobility by Poverty Status, 2015 to 2016

This is the final factoid in a series of four factoids that give a snapshot of current movers and what factors might determine mobility at this time in America – age, marital status, owning versus renting, and poverty status. With only 11.2 percent of people moving from 2015 to 2016, American mobility is at an all-time record low. The previous three factoids focused on age of movers, marital status, and owners vs. renters, while this factoid centers around mobility by poverty status.

Although 13.5 percent of the population is below 100% of poverty, 22.6 percent of movers were these lowest income households. Americans at 150% of poverty (incomes over $36,450 for a family of four) accounted for 66.4 percent of movers from 2015 and 2016 and 79 percent of nonmovers.

Americans with higher household incomes (above $36,450 for a family of four) are choosing to stay in place – only 9.6% moving in 2016. The poverty category with the lowest income had the highest percentage of Americans move over 2015 to 2016, 18.6 percent of those below 100% of poverty moved over last year.

Source: U.S. Census Bureau, General Mobility by Poverty Status  *Poverty level categories add to 100%

Series Factoid #3: Mobility in America Continues to Decline: Mobility Among Owners Vs. Renters-2015 to 2016

This is the third factoid in a series of four factoids that give a snapshot of current movers and what factors might determine mobility at this time in America – age, marital status, owning versus renting, and poverty status. With only 11.2 percent of people moving from 2015 to 2016, American mobility is at an all-time record low. The previous two factoids focused on age of movers and marital status while this factoid centers around mobility of homeowners versus renters.

Just over one-third of the population lives in renter-occupied units. As expected, renters of housing units change residence much more often than owners of housing units. Of the 108.2 million renters from 2015 to 2016, 24.8 millions were movers (22.9 percent), compared to just 5 percent of owners. Only 10.3 million people in owner-occupied units moved last year, while 196.4 million homeowners remained in the same residence. Renters accounted for more than two thirds (70.6 percent) of movers from 2015 to 2016. The next and final factoid of this series will look at the mobility of Americans based on Poverty Status.

Source: U.S. Census Bureau, General Mobility by Tenure

Mobility in America Continues to Decline: Influence of Marital Status on Mobility: 2015 to 2016

This is the second factoid in a series of four factoids that give a snapshot of current movers and what factors might determine mobility at this time in America – age, marital status, owning versus renting, and poverty status. With only 11.2 percent of people moving from 2015 to 2016, American mobility is at an all-time record low. The previous factoid focused on age of movers, while this factoid centers around marital status.

Marital Status plays a major role in a person’s desire, ability and necessity to move. Not surprisingly, 17.2 percent of separated people moved in 2016 with never-married people following close behind at 15.8 percent. Eleven percent of divorced individuals moved last year, while only 7.4 percent of married individuals changed residence. Widowed individuals tend to stay put with only 5.1 percent in the category moving.

Att 37.4 percent, single, never married people were the highest category of movers from 2015 to 2016. In the same time span, married individuals were the greatest portion of nonmovers at 41.5 percent. The next factoid in this series will look at the mobility of owners versus renters.

Source: U.S. Census Bureau, General Mobility by Marital Status

Mobility in America Continues to Decline

Once a nation of movers, Americans are increasingly less likely to sell their homes or leave their apartments and move across the country or even down the street.  With only 11.2 percent of people moving from 2015 to 2016, American mobility is at an all-time record low. Since the 1950’s, mobility has plummeted almost 50 percent – from 21.2 percent of the population changing residence down to 11.2 percent in 2015 to 2016. While the previous decade’s stagnant change in residence can be owed partly to the economy, this downturn has been steady for over forty years.

This series of factoids gives a snapshot of current movers and what factors might determine mobility at this time in America – age, marital status, owning versus renting, and poverty status. Factoid #1 begins the series focusing on the age of movers.

By far, younger adults moved the most from 2015 to 2016. Twenty-three percent of 20 to 24 year olds and 20.1 percent of 25 to 34 year olds moved last year – double that of 35 to 44 year olds (11.1 percent). With increasing age, the percentage of an age group’s mobility declined significantly. For example, less than 4 percent of adults over age 55 moved between 2015 and 2016.

Fifty percent of all persons changing residence 2015 to 2016 were split evenly between children (24.9 percent) and young adults 25 to 34 (25 percent). Of the 35.1 million movers, 23.7 million (67.3 percent of all movers) were under the age of 35.

Source: U.S. Census Bureau, Annual Geographic Mobility Rates, General Mobility by Age

Industry Sales by Quarter: 2010 Q2 to 2017 Q2 - Bedding Industry

Like other furniture industry products, bedding growth has been slow in the first two quarters of this year. 2017 Q2 Bedding sales are up 2.3 percent over the same quarter last year reaching $3.65 billion. Compared to last quarter (2017 Q1), sales are up only 1.25 percent. Year-to-date, the second quarter is up 2.2 percent over 2016.

The slow growth in 2017 in the Bedding industry is reflected in the quarter-over-quarter performance. Bedding sales in the second quarter this year are up 2.3 percent quarter over quarter totaling $3.65 billion.

Second quarter 2017 year-to-date bedding sales totaled $7.25 billion, up 2.2 percent from the same period last year. 

Source:  Impact Consulting Services, Inc. industry model. 2016 and 2017q1 results have been revised.

Industry Sales by Quarter: 2010 Q2 to 2017Q2 Furniture & Bedding

The furniture and bedding industry continued slow growth in the second quarter with sales up 2.14 percent over the same quarter last year.  Combined furniture and bedding reached $24.48 billion in Q2, up from first quarter sales of $24.07 billion (1.68 percent growth).

Furniture (excluding Bedding) in the second quarter increased 2.11 percent compared to the same quarter in 2016 totaling $20.47 billion. Compared to the first quarter of this year, furniture sales grew a modest 1.76 percent. Year-to-date sales reached $41.3 billion, up 2.09 percent over the first two quarters of last year.

The Bedding industry has also slowed. In the second quarter of 2017, bedding sales were up 2.3 percent over the same quarter of last year and up only 1.25 percent over the previous 2017 Q1. Second quarter sales reached $3.65 billion with year-to-date sales totaling $7.25 billion, up 2.16 percent over the first two quarters of 2016.

Percent Growth

Quarter-over-quarter growth shows the slowing of the industry beginning in the second quarter of last year and continuing through the second quarter of this year. In both the first and second quarters, industry sales grew 2.1 percent to $48.55 billion year-to-date. Q2 sales reached $24.48 billion compared to Q1 at $24.07 billion.

Furniture (excluding Bedding) increased 2.14 percent in 2017Q2 versus the same first quarter of 2016 with sales of $20.83 billion. This figure was up 1.68 percent over the same quarter last year

Bedding 2017 Q2 sales totaled $3.65 billion, up 2.3 percent over second quarter of 2016 and 1.25 percent over the previous first quarter of this year.

Source:  Impact Consulting Services, Inc. industry model 2016 and 2017q1 results been revised.