December 28,
2016 by Jane Chero in General 
Trends in New Home Building Multi-Story Houses and Outdoor Living
This is the fourth factoid in a series of six factoids detailing trends in new home building. New home purchases spur new home furnishings purchases like no other life event. As home building continues its slow but steady comeback from the recession, new trends in home building are emerging creating opportunity in many home furnishings product areas. According the new HUD report, single-family home building is up 23 percent since 2009 and for the first half of this year, new home completions are up 14 percent from the first half of 2015.
Trends include an increase in bigger multi-story homes with more bedrooms, baths, and multiple patios, porches and decks on increasingly smaller lots. Other trends point to the ballooning senior population downsizing to age-restricted communities with less interest in some design features such as fireplaces, but more interest in comfort features.
Multi-story new single family homes are on the rise with 63 percent built in 2015 versus 58 percent in 2009 . Partly due to declining lot sizes paired with desire for bigger homes, single-story houses were down to 37 percent of completions in 2015.
As outdoor living has become a major feature in many new homes, multiple porches, patios, and decks are trending for the larger homes– up to 46 percent in 2015 from 43 percent in 2010. The next factoid in this series will focus on laundry room placement, the number of fireplaces, and the presence of air conditioning in new home building.
*New single-family homes completed for sale
Source: U.S. Department of Housing and Urban Development, “Characteristics of New Single-Family Houses 2015”
Trends in New Home Building Laundry Rooms, Fireplaces, and Air-Conditioning Percent of Houses Built in Selected Years
This is the fifth factoid in a series of six factoids detailing trends in new home building. New home purchases spur new home furnishings purchases like no other life event. As home building continues its slow but steady comeback from the recession, new trends in home building are emerging creating opportunity in many home furnishings product areas. According the new HUD report, single-family home building is up 23 percent since 2009 and for the first half of this year, new home completions are up 14 percent from the first half of 2015.
Trends include an increase in bigger multi-story homes with more bedrooms, baths, and multiple patios, porches and decks on increasingly smaller lots. Other trends point to the ballooning senior population downsizing to age-restricted communities with less interest in some design features such as fireplaces, but more interest in comfort features.
As more new houses are being built with multiple stories, laundry rooms are moving out of basement and off the main floor and up to top floor (second floor).
In 2015, 29 percent new homes have top floor laundry rooms compared to 16 percent in 2009 – an increase of 81 percent.
A surprising trend especially given the increasing size of new homes is that fireplaces are becoming less important except in the Northeast. And while over half (51 percent) of the new homes being built still have fireplaces, this is down from 61 percent in 2002. In the Northeast fireplaces are still important – climbing from 62 percent of new homes in 2002 to 66 percent of in 2015.
Air conditioning is becoming the norm across the country with 94 percent of new homes built with AC in 2015 – up from 89 percent in 2002. The fastest increase in new houses built with air-conditioning has been in the Northwest and West – both jumping 10 percentage points from 2002 to 2015.
*New single-family homes completed for sale
Source: U.S. Department of Housing and Urban Development, “Characteristics of New Single-Family Houses 2015”
Trends in New Home Building
This is the final factoid in a series of six factoids detailing trends in new home building. New home purchases spur new home furnishings purchases like no other life event. As home building continues its slow but steady comeback from the recession, new trends in home building are emerging creating opportunity in many home furnishings product areas. According the new HUD report, single-family home building is up 23 percent since 2009 and for the first half of this year, new home completions are up 14 percent from the first half of 2015.
Trends include an increase in bigger multi-story homes with more bedrooms, baths, and multiple patios, porches and decks on increasingly smaller lots. Other trends point to the ballooning senior population downsizing to age-restricted communities with less interest in some design features such as fireplaces, but more interest in comfort features.
An important new trend in new home communities, especially in the South, is the increase in the number of age restricted developments (generally 55+). Although still less than 5 percent of new homes built in 2015, these neighborhoods have increased 54 percent from 2009 to 2015. The Midwest and South doubled construction in age restricted developments since 2009 while the Northeast declined 33.3 percent indicating seniors making this lifestyle move want to escape the colder climates. The West showed no growth. The growth in these age restricted communities may partially explain the decline in fireplaces in warmer climates as they become less important to seniors.
New single family houses are increasingly being built in communities with structured homeowners’ associations (HOAs), except in the Northeast. In total, new homes with HOAs jumped 11 percentage points from 2009 to 2015 – 62 percent to 73 percent. In the South these structured communities are especially important with 81 percent of new homes built in neighborhoods with an HOA. Meanwhile, in the Northeast in 2015, homes built in HOA communities represented only 40 percent of the region’s new construction.
*New single-family homes completed for sale
Source: U.S. Department of Housing and Urban Development, “Characteristics of New Single-Family Houses 2015”
December 16,
2016 by Jane Chero in General
This is the third factoid in a series of six factoids detailing trends in new home building. New home purchases spur new home furnishings purchases like no other life event. As home building continues its slow but steady comeback from the recession, new trends in home building are emerging creating opportunity in many home furnishings product areas. According the new HUD report, single-family home building is up 23 percent since 2009 and for the first half of this year, new home completions are up 14 percent from the first half of 2015.
Trends include an increase in bigger multi-story homes with more bedrooms, baths, and multiple patios, porches and decks on increasingly smaller lots. Other trends point to the ballooning senior population downsizing to age-restricted communities with less interest in some design features such as fireplaces, but more interest in comfort features.
As houses have increased in size, more bedrooms have become the norm. Over 53 percent of new single-family homes built in 2015 have four or more bedrooms – up from 38.2 percent in 2009. Three-bedroom homes, once the majority in new constructions, have decreased from 52.6 percent to 40.7 percent since the recession – a drop of 23 percent. Homes with more bedrooms create product opportunities, not only for bedroom furniture, but also home office or other alternative uses.
Along with more bedrooms, a big jump has occurred post recession in the number of bathrooms. The percentage of new homes with three baths or more grew by 105 percent – from 23.6 percent of new houses to 41.1 percent in six years. The next factoid in this series will focus on the number of stories and the increasing amounts of outdoor space.
*New single-family homes completed for sale
Source: U.S. Department of Housing and Urban Development, “Characteristics of New Single-Family Houses 2015”
December 9,
2016 by Jane Chero in General
This is the second factoid in a series of six factoids detailing trends in new home building. New home purchases spur new home furnishings purchases like no other life event. As home building continues its slow but steady comeback from the recession, new trends in home building are emerging creating opportunity in many home furnishings product areas. According the new HUD report, single-family home building is up 23 percent since 2009 and for the first half of this year, new home completions are up 14 percent from the first half of 2015.
Trends include an increase in multi-story homes with more bedrooms, baths, and multiple patios, porches and decks. Other trends point to the ballooning senior population downsizing to age-restricted communities with less interest in some design features such as fireplaces, but more interest in comfort features. Chief among the trends: Single-family homes are getting bigger – much bigger – and lot sizes smaller.
While the median size of new homes grew 23.3 percent from 2000 to 2015, median lot size decreased 4.6 percent from 8,930 square feet to 8,521 square feet or about one-fifth of an acre. As of 2015, over half (58 percent) of new single-family home lot sizes are less than 9,000 square feet or just over one-fifth of an acre. Moreover, lot sizes (cluster homes) under 7,000 square feet increased to 36 percent of new homes built.
The next factoid in this series will focus on the increase of bedrooms and bathrooms in new single-family homes.
*New single-family homes completed for sale
Source: U.S. Department of Housing and Urban Development, “Characteristics of New Single-Family Houses 2015”
December 2,
2016 by Jane Chero in General
Industry Sales by Quarter 2009 Q3 to 2016 Q3 Bedding Industry
Third quarter is traditionally Bedding’s highest sales period. In keeping with its seasonality, 2016 Q3 rebounded 7.6 percent over the second quarter, but was up less than one percent (0.9 percent) compared to the same Q3 last year. Third quarter sales totaled $3.8 billion.
Industry Growth Quarter to Quarter 2013 Q3 to 2016 Q3 Bedding Industry
The slow growth this year in the Bedding industry is reflected in the quarter-over-quarter increase from 2015 to 2016. Bedding sales in the third quarter this year were up only 0.9 percent quarter over quarter totaling $3.8 billion. However, compared to the second quarter, sales were up 7.6 percent. Traditionally, third quarter is Bedding’s highest sales quarter.
Industry Sales 2008 to 2016 Q3 Bedding Industry
Third quarter year-to-date Bedding sales totaled $10.73 billion, up only 2.1 percent from the same period last year.
Source: Impact Consulting Services, Inc. industry model. 2016 Q1 and Q2 sales have been revised.
November 28,
2016 by Jane Chero in General
Industry Growth Quarter to Quarter 2013 Q3 to 2016 Q3 Furniture & Bedding
Industry sales are still growing, but at a slower pace, as shown by the chart above. For the third straight quarter, quarter-over-quarter industry performance has slowed.
Third quarter combined Furniture and Bedding industry sales of $23.8 billion were a modest 1.7 percent improvement over the same Q3 in 2015. Compared to last quarter (2016 Q2) sales were flat.
Furniture (excluding Bedding) increased 1.8 percent in 2016 Q3 versus the same quarter last year with sales of $20.0 billion.
Bedding quarter-over-quarter sales totaled $3.8 billion, up only 0.9 percent over second quarter sales last year.
Industry Sales 2008 YE to 2016 Q3 Furniture & Bedding
Year-to-date industry sales in the third quarter of 2016 totaled $71.0 billion, an increase of 3.6 percent over the same period last year.
November 18,
2016 by Jane Chero in General
Industry sales growth continued to slow in the third quarter to 1.7 percent growth compared to Q3 of last year and were flat compared to the second quarter of this year. Total furniture and bedding sales totaled $23.8 billion in Q3.
Year-to-date through the third quarter, the industry grew at 3.65 percent.
Furniture (excluding Bedding) in the third quarter increased 1.8 percent compared to the same quarter last year totaling $20.0 billion. Compared to the second quarter of this year, furniture only sales are down 1.4 percent. Year-to-date furniture sales (excluding Bedding) are up 3.9 percent.
The Bedding industry also experienced a low 0.9 percent growth quarter to quarter and was but was up 7.6 percent compared to the second quarter of this year. Sales totaled $3.8 billion in Q3. Year-to-date sales are up 2.1 percent. (Note: Second quarter sales were revised upward.)
November 11,
2016 by Jane Chero in General
This is the first factoid in a series of six factoids detailing trends in new home building. New home purchases spur new home furnishings purchases like no other life event. As home building continues its slow but steady comeback from the recession, new trends in home building are emerging creating opportunity in many home furnishings product areas. According the new HUD report, single-family home building is up 23 percent since 2009 and for the first half of this year, new home completions are up 14 percent from the first half of 2015.
Trends include an increase in multi-story homes with more bedrooms, baths, and multiple patios, porches and decks. Other trends point to the ballooning senior population downsizing to age-restricted communities with less interest in some design features such as fireplaces, but more interest in comfort features. Chief among the trends: Single-family homes are getting bigger – much bigger – and lot sizes smaller.
The median size of new homes grew 23.3 percent from 2000 to 2015– increasing from 2,060 square feet to 2,540 square feet according to the new report “Characteristics of New Single-Family Houses in 2015” from the U.S. Department of Housing and Urban Development (HUD). Even with the housing market collapse in 2009, new homes have continued to get bigger since 2002. Only 37 percent of new homes built in 2002 were over 2,400 square feet. Fast forward 13 years and 56 percent of new houses are now 2,400 square feet or larger. Also important is that in 2002, 34 percent of new homes were smaller than 1,800 square feet compared to only 15 percent in 2015.
*New single-family homes completed for sale
Source: U.S. Department of Housing and Urban Development, “Characteristics of New Single-Family Houses 2015”
November 4,
2016 by Jane Chero in General
This is the final factoid in a series of four factoids addressing the rise of e-commerce in furniture manufacturing and the merchant wholesale trade. The Census Bureau defines manufacturers’ shipments to include “orders accepted for manufactured products from customers, including shipments to other domestic plants”. (See Methodology and Definitions in the first factoid of this series.)
Since the turn of the century, e-commerce has slowly climbed its way into the furniture and home furnishings merchant wholesale trade. Merchant wholesalers* weathered the recession well growing 43.8 percent in sales 2002 to 2014 to $76.9 billion while the e-commerce portion of those sales jumped 113 percent to $11.1 billion. MSBOs* total shipments at $21.0 billion in 2014 grew more slowly -- 17.3 percent 2002 to 2014. E-commerce shipments from merchant wholesalers alone have increased a yearly average of 7 percent, while furniture MSBO’s have increased by 3 percent.
Although increasing just 30 percent in e-commerce sales from furniture MSBOs over 12 years, e-commerce accounts for 21 percent of furniture and home furnishings MSBOs compared to other merchant wholesalers at 14 percent. As a percent of total shipments, e-shipment sales of both merchant wholesalers and MSBO’s have declined since 2011.
With more advanced websites and ordering portals that make it easier for a business to make purchases online, e-commerce should continue to grow as a key part of the furniture industry.
*Merchant Wholesalers are wholesalers who sell goods on their own account such as distributors, jobbers, drop shippers, import/export merchants, and MSBOs. Manufacturers’ Sales Branches and Offices (MSBOs) are establishments maintained by manufacturing, refining, or mining enterprises apart from their plants or mines for the purpose of marketing their products. Sales branches will typically carry inventories, while sales offices typically do not. – U.S. Census Bureau
Source: U.S. Census Bureau, Economic Census, Annual Wholesale Trade Survey
**excludes MSBOs (Manufacturers’ Sales Branches and Offices)
October 28,
2016 by Jane Chero in General
This is the third factoid in a series of four factoids addressing the rise of e-commerce in furniture manufacturing and the merchant wholesale trade. A report from the Census Bureau shows business to business (B2B) e-shipments within the furniture and related manufacturing segment is now approaching 51 percent of the value of total shipments or $35.2 billion dollars in 2014. The Census Bureau defines manufacturers’ shipments to include “orders accepted for manufactured products from customers, including shipments to other domestic plants”. (See Methodology and Definitions in the first factoid of this series.)
While e-shipments have grown at a rapid pace, furniture and related products manufacturers are still lagging slightly behind all manufacturing in the percentage of e-commerce shipments to total. In 2014, total e-shipments in all industries were 60.9 percent of total manufacturing compared to furniture e-shipments at 50.6 percent. Both total manufacturing e-shipment dollars and furniture e-shipment dollars increased an annual average of 14 percent from 2004 to 2014.
Source: U.S. Census Bureau, Annual Survey of Manufacturers and the Economic Census
*Furniture and related products manufacturing
October 21,
2016 by Jane Chero in General
This is the second factoid in a series of four factoids addressing the rise of e-commerce in furniture manufacturing and the merchant wholesale trade. A report from the Census Bureau shows business to business (B2B) e-shipments within the furniture and related manufacturing segment is now approaching 51 percent of the value of total shipments or $35.2 billion dollars in 2014. The Census Bureau defines manufacturers’ shipments to include “orders accepted for manufactured products from customers, including shipments to other domestic plants”. (See Methodology and Definitions in the first factoid of this series.)
The total value of manufacturing shipments in the furniture industry took a downturn alongside the economy during the recession. The 2014 value at $69.6 is still 9.9 percent below 2002. E-commerce shipments on the other hand kept an upward trajectory through the recession – increasing a total of 335.9 percent over 12 years. While total furniture and related products manufacturing increased by 15.4 percent since 2009, e-commerce shipments jumped another 70.3 percent to finish 2014 at $35.2 billion.
The percentage of total dollar shipments via e-commerce has climbed from 10.5 percent in 2002 to 50.6 percent in 2014 with the vast majority of growth (313 percent) occurring between 2002 and 2011 . From 2011 to 2013, increases of e-commerce as a percentage of total shipments tapered off. However, an 11 percent jump in 2014 pushed e-commerce to over half of furniture and related products shipment dollars.
Source: U.S. Census Bureau, Annual Survey of Manufacturers and the Economic Census
*Furniture and related products manufacturing