I often get asked what new homeowners buy after they have moved into their new home.
According to a survey by Welcome Homeowners Magazine of new homeowners buying habits, 72% of new homeowners will spend between $10,000 and $25,000 within the first year after they move. 41% of these new homeowners will buy furniture. 20% will buy furniture within the first thirty days.
Most new homeowners are excited about their new home purchase. And that means buying a lot of things, including furnishings and major appliances.
According to a 2017 study by the National Association of Home Builders (NAHB), the average 1st year expenditure for buyers of new homes was $10,601. NAHB defined a new home as one built in 2012 or later. This study about the Characteristics of Recent Home Buyers compares the spending between homeowners who bought new homes versus older homes. The differences between the sum of money spent is very interesting.
Furniture and furnishings
The biggest outlay in the budget of new home buyers is furnishings. The survey indicated that New Homeowners spend an average of $3,778 on furnishings. This outspent resale home buyers by 70% and non-moving owners 5.3 times.
The biggest ticket item for new home buyers is sofas. The average sale exceeded $700 during the first year after moving. This is 60% higher than the amount spent by buyers of resale homes. Plus, this amount is 6.4 times higher than what non-moving, existing homeowners owners typically spend on sofas per year.
Here’s a quick overview of some other items that, on average, new homeowners will buy during their first year. These are based on the 2017 median home sales price of $228,389. The median size of these homes was 1,890 square feet.
- Sofa: $724
- Living room chairs and tables: $687
- Bedroom furniture: $634
- Clothes washer and dryer: $575
- Lawn mower/other yard equipment: $515
- Dining room and kitchen furniture: $345
- Power tools: $232
- Refrigerator or freezer: $183
- Bedroom/bathroom linens: $180
- Modular wall units, shelves/cabinets: $144
- Patio/porch/outdoor furniture: $159
- Curtains and drapes: $56
Home Improvement Spending by New Homeowners
In terms of Home Improvements, new homeowners who bought new homes / new construction spent almost as much ($3,729) as buyers of existing homes ($4,085). They also outspent non-moving, existing homeowners ($2,232) on property alterations and repairs.
However, the specific types of remodeling projects are quite different across the groups. No surprises here. New Homeowner buyers of resale homes and existing homeowners spend more on repairs and replacements than new construction buyers.
They also outspend new home buyers on kitchen/bathroom additions or remodeling. Other big purchases include HVAC, electrical and security systems, paneling, flooring, siding, windows and doors.
This means that companies who sell these types of home improvement products should market to buyers of resale homes. The best way to do this is selecting resale new homeowner transactions using the Dataman New Homeowner list.
Interestingly, when it comes to outside additions and alterations, including a new driveway, walk, or fence, new home buyers outspend existing home buyers and non-moving owners by far.
Through the study, we know that existing homeowners spend more on repairs and replacements than new homeowners. Certainly, businesses that specialize in roofing and HVAC replacement should market to existing homeowners on an on-going basis.