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How a Home Purchase

Boosts Consumer Spending

A new consumer spending analysis from NAHB tendency of buyers to outspend non-moving owners
highlights another reason why home building helps on appliances, furnishings and home improvements
drive a healthy economy: In their first year of ownership, was similar.
new home buyers spend about $10,601 on appliances, In the aggregate, most of the demand for appliances,
furnishings and home improvement projects — 2.6 furnishings and remodeling projects in a given year
times as much as other home owners in a typical year. is generated by non-moving home owners, because
NAHB economist Natalia Siniavskaia studied the they outnumber home buyers by such a wide margin.
U.S. Bureau of Labor Statistics Consumer Expenditure But new owners’ impact is noticeable — and vital,
Survey to help quantify the wave of activity — and cash MacDonald said. “The health of housing — and
— spent to install new refrigerators, buy couches and new home buying — is key to the overall state of our
make other improvements as new owners personalize economy.”
their homes.
“While construction jobs are the most obvious Spending of a Typical New Home Buyer
impact of new homes on the economy, it’s important to $4,740
realize that it doesn’t stop there,” said NAHB Chairman $4,245 $4,027
Granger MacDonald, a home builder and developer in
Kerrville, Texas.
“It’s the architects, the heating technicians, the $3,037
lumber dealers. And it’s the mom-and-pop owners at
the local furniture or appliance store who are helping
these buyers make their house a home,” he said. $1,780 $1,761
During the first two years after closing on the house,
a typical buyer of a newly built single-family home
tends to spend on average $4,500 more than a similar
non-moving home owner. Appliances Furnishings Property Repairs/Alterations
A previous NAHB study based on 2004-2007 data
collected during the housing boom showed somewhat First Year After Buying A New Home If Not Moving
higher spending by home owners overall. But the NAHB JULY 2017

AUGUST 2017 | GREATER SAN ANTONIO BUILDERS ASSOCIATION 23