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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

Housing Choices in Today’s Market Average Square Feet of New Housing Units Single Family Vs. Multi Family Units 2000 to 2014

 

This is the third in a series of five factoids studying the recovering housing market by delving into the primary factors that determine a consumer’s home choices. Not only faced with the decision to rent or buy, households planning to move are making choices based on age, size and cost of housing structures. 

This factoid shows that one thing is clear, single-family houses keep getting bigger. The average size of a new single-family home has grown 17.2 percent from 2,266 square feet in 2000 to 2,657 square feet in 2014. Meanwhile new apartment construction, which peaked in 2008 at 1,300 square feet on average, is holding now at 1,151 square feet.

Our next two factoids in this series will explore financial characteristics of the housing market by detailing monthly mortgage and rent costs as well as the percentage of household income spent on housing. 

Source: U.S. Census Bureau, Dept. of Housing and Urban Development, Survey of Construction

Housing Choices in Today’s Market Age of All Occupied Housing Units Year Current Housing Units Were Built


This is the second in a series of five factoids studying the recovering housing market by delving into the primary factors that determine a consumer’s home choices. Not only faced with the decision to rent or buy, households planning to move are making choices based on age, size and cost of housing structures. 

Now that people are moving, what are the housing options? Consumers initially face the choice of purchasing or moving into a new versus old property. And with housing starts slow to recover from the recession, households are increasingly faced with an aging housing industry. This factoid shows the year current housing was built for all occupied housing units. (Note: Rental versus owner-occupied units is not shown separately as data showed no significant difference between the two.)

Particularly startling is that 28.7 percent of all housing is 55 plus years old and 55.4 percent over 35 years old.  The majority of the housing inventory in 2014 (54.5 percent) was built between 1960 and 1999. Only 2.2 percent of housing units were built in the last four years and a total of 16.8 percent since 2000. Many current and potential homeowners are living in or considering older homes and face ongoing costs of renovations and repairs – potentially dipping into new furniture expenditures.

Source: U.S. Census Bureau, American Community Survey (ACS)


Housing Choices in Today’s Market Mobility: Percentage of U.S. Housing Units Occupied by Years 2014

 

This is the first in a series of four factoids studying the recovering housing market by delving into the primary factors that determine a consumer’s home choices. Not only faced with the decision to rent or buy, households planning to move are making choices based on age, size and cost of housing structures. 

During the Recession, people generally put moving on hold. As the economy has improved, mobility has slowly increased and more households are changing residences. 60.6 percent of total U.S. housing units were moved into since the year 2000 and 38.4 percent in the last five years.

Apartments are particularly transient with 70 percent of apartment units moved into within that same five-year period. As expected, owner-occupied housing units are more stable with 20 percent of these units moved into in the last five years, and 56.7 percent since 2000.

Next week’s factoid will describe the aging of the housing inventory.

Source: U.S. Census Bureau, American Community Survey (ACS)


Housing Shifts from Owners to Renters Financial Characteristics of Householders 2009 to 2014

 

This is the final factoid in a series of three factoids detailing a rise of renters in the Housing Industry over the past five years. Since 2009, renting has increased among householders of all ages, marital status, and income level. 

Overall, apartment dwelling is increasing across all income levels 2009 to 2014. Households with incomes under $100,000 have been slowly migrating away from homeownership toward apartments. For incomes $50,000 to $99,999, ownership decreased by 6.0 percent while rentals increased 23.9 percent. The number of housing units with income under $50,000 declined in total 3.6 percent, with owner occupied units taking the hit. This income group makes up 65.8 percent of rental units.

Source: U.S. Census Bureau, American Community Survey (ACS)


Housing Shifts from Owners to Renters: Household Characteristics 2009 to 2014

 

This is the second in a series of three factoids detailing a rise of renters in the Housing Industry over the past five years. Since 2009, renting has increased among householders of all ages, marital status, and income level. 

The mix of household characteristics between owners and renters has changed very little in five years. As expected, married-couple families are the majority of owner occupied housing units – accounting for 60 percent in 2014. Surprisingly, householders living alone make up 27.8 percent of all housing units.

Source: U.S. Census Bureau, American Community Survey (ACS)


Housing Shifts from Owners to Renters: Householders by Age 2009 to 2014

 

This is the first in a series of three factoids detailing a rise of renters in the Housing Industry over the past five years. Since 2009, renting has increased among householders of all ages, marital status, and income level. 

In the five year period 2009 to 2014 every age group saw an increase in the number of households renting versus owning. In addition, age groups under 55 years all experienced double-digit decreases in the number of homes owned.

Overall households in total grew 3.2 percent; however, owner-occupied units fell 1.3 percent while apartment and home rentals grew 11.4 percent. For homeownership, the largest segment continues to be the 65 and over age group, while the Under 35 group is the largest rental group.

Source: U.S. Census Bureau, American Community Survey (ACS)

 

Consumer Confidence Drives Consumer Spending Indexed Growth of Consumer Confidence, New Home Sales, and Existing Home Sales 2007 to 2015 YTD

 

This is the final factoid in a series of four factoids exploring the impact of consumer confidence on a rising demand for consumer products, especially durable goods. Consumer confidence, measured monthly by The Conference Board, is “a barometer of the health of the U.S. economy from the perspective of the consumer”.

A major piece of the consumer spending pie is housing, especially new home sales. Economic conditions drive the homebuilding industry and once building slows, it takes a while for housing starts to catch up once the consumer starts to regain confidence.

New Home Sales plummeted alongside Consumer Confidence as the Housing Industry went bust during the Recession taking almost two years to bottom out after the confidence began to recover. A drop of 61 percent in New Home Sales occurred from 2007 to 2011. As the confidence in the economy picked up, Housing Starts ignited and New Home Sales are finally on a steady rise – growing 68 percent from 2011 but still only reaching a 66.2 index in 2015 YTD. Existing Home Sales also felt the effects of a decrease in Consumer Confidence – dropping down to 74.1 index in 2010, but were quicker to recover due to an already present housing inventory.

Source: The Conference Board: Consumer Confidence Index, U.S. Census Bureau


Consumer Confidence Drives Consumer Spending Index Growth of Consumer Confidence and Durable Goods 2007 to 2015 YTD

 

This is the third in a series of four factoids exploring the impact of consumer confidence on a rising demand for consumer products, especially durable goods. Consumer confidence, measured monthly by The Conference Board, is “a barometer of the health of the U.S. economy from the perspective of the consumer”.

Consumer Confidence is perhaps the prime external driver of consumer spending. Population and household formations form the base for growth in spending; however, Consumer Confidence drives demand, especially when it comes to durable goods.

New Motor Vehicles follows a similar trajectory as Consumer Confidence with personal consumption dropping dramatically from 2007 to 2009 (down 29 percent) before climbing an average of 8 percent to a 2015 YTD index of 119. Also dipping in 2009, although only 15.8 points compared to 29 points for New Motor Vehicles, consumption of Furniture and Home Furnishing items rebounded by 23 percent from 2009 to 2015ytd. After peaking in 2008, the Video and Audio Equipment Industry experienced a slight downturn due to the Recession but overall has been flat for the past 8 years.

Confidence has a lesser impact on non-durable goods, like food and clothing, which tend to avoid the peaks and valleys of confidence swings more so than durable goods.

The next and final factoid in this series will show the relationship between Consumer Confidence and Housing – the other piece of the consumer spending pie. 

Source: The Conference Board: Consumer Confidence Index, Bureau of Economic Analysis


Consumer Confidence Drives Consumer Spending Index Growth of Consumer Confidence, Employment, and Personal Income 2007 to 2015 YTD

 

This is the second in a series of four factoids exploring the impact of consumer confidence on a rising demand for consumer products, especially durable goods. Consumer confidence, measured monthly by The Conference Board, is “a barometer of the health of the U.S. economy from the perspective of the consumer”.

Although confidence tends to fluctuate more strongly than actual economic data, the CCI (Consumer Confidence Index) is a lagging indicator in response to several economic catalysts, among them the health of our jobs market, growth in wages, and the overall global political and financial climate.

More than any other indicator, Consumer Confidence tends to mirror the growth in personal income with the CCI responding more sharply to economic downturns. Employment bottomed out in 2010 at an index of 94.4 –6 percent below 2007. (2007 = 100) Since then, the number of employed workers has increased by 8 percent and is currently at an index of 102.5. Personal Income stayed flat during the Recession but quickly gained momentum after 2009 and has increased to 126.8 index – a growth of 26 percent.

Next week’s factoid will show a direct correlation between Consumer Confidence and Personal Consumption, specifically durable goods. 

Source: The Conference Board: Consumer Confidence Index, Bureau of Labor Statistics, Bureau of Economic Analysis


Consumer Confidence Drives Consumer Spending Consumer Confidence Index 2007 to 2015 YTD (Annual Average)

This is the first in a series of four factoids exploring the impact of consumer confidence on a rising demand for consumer products, especially durable goods. Consumer confidence, measured monthly by The Conference Board, is “a barometer of the health of the U.S. economy from the perspective of the consumer”. With a surge in Housing Starts, flattening of home electronics, and possible waning of new automobile sales, the Furniture Industry should benefit with the rise of confident consumers. 

About 70% of the Gross National Product is consumer spending, and one of the prime drivers of spending is Consumer Confidence. The Consumer Confidence Index increased to 103.0 in September, up from the 2015 low in July of 91. The all-time low in confidence occurred in February 2009 when it fell to a recession low of 25.3.  (Source: The Conference Board, Consumer Confidence Index)

Consumer Confidence took a nosedive after a high of 103.4 in 2007 – dropping to an average of 45.4 in 2009. Since the Great Recession, confidence in the economy has steadily increased a yearly average of 9 index points – resulting in a total jump of 53.3 points from 2009 to 2015 year to date (annual average).

Next week’s factoid will show the tie between Consumer Confidence and Employment and how the health of the U.S. job market affects the Consumer Confidence Index.

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