WASHINGTON, DC — Buyers of new and existing homes spend thousands of dollars more on remodeling and furnishings in the first year after a purchase compared to non-moving homeowners, according to estimates by the National Association of Home Builders.
NAHB’s latest estimates, based on pre-pandemic data from the Bureau of Labor Statistics, reveal that during the first year after purchase, a typical buyer of a newly built single-family detached home spends on average $9,250 more than a similar non-moving homeowner. Likewise, a buyer of an existing single-family detached home tends to spend about $5,240 more on remodeling, furnishings and appliances than a similar non-moving homeowner, according to the Washington, DC-based NAHB.
In the case of buying an older home, most of the extra spending goes to property repairs, alterations and various remodeling projects, the NAHB found. For furnishings, buyers of existing homes boost their spending by over $1,360 during the first year after moving in, while in the case of appliances, buyers of existing homes outspend similar non-moving owners by $768, the NAHB said.
“NAHB’s analysis shows that a home purchase alters the spending behavior of homeowners, who spend more on appliances, furnishings and remodeling compared to non-moving owners during the first year after moving,” the trade association observed.
“The analysis further shows that this higher level of spending on furnishings, appliances and property alterations is not paid by cutting spending on other items such as entertainment, transportation, travel, food at home, restaurant meals, etc.,” the NAHB added. “This confirms that home buying indeed generates a wave of additional spending and activity not accounted for in the purchase price of the home alone.”