From Home Furnishing Business
Fast Fact: Rising Housing Costs Eat Away at Consumer Spending
Rising housing costs contribute to the steady increase of personal consumption expenditures since the Great Recession.
According to data from the Bureau of Economic Analysis (BEA), renter-occupied housing has surged as the fastest growing housing expense – up 86.4% since 2007. Both household insurance and owner-occupied housing expenditures have also grown at a fast pace, increasing by 40.8% and 47.5% respectively.
As Americans are staying put longer, household maintenance spending has grown an average of 4.8% a year from 2011 to 2016. Last year, rents and mortgages both saw a high growth of 4.5% and 4.4% as supply continues to tighten in many areas.
Furniture has shown the most growth over the past year, rising 7% after an average yearly increase of 4.6 percent from 2011 to 2016.
For an in-depth look at the numbers, click here.