A new consumer spending analysis from NAHB highlights another reason why home building helps drive a healthy economy: In their first year of ownership, new home buyers spend about $10,601 on appliances, furnishings and home improvement projects — 2.6 times as much as other home owners in a typical year.
NAHB economist Natalia Siniavskaia studied the U.S. Bureau of Labor Statistics Consumer Expenditure Survey to help quantify the wave of activity — and cash — spent to install new refrigerators, buy couches and make other improvements as new owners personalize their homes.
“While construction jobs are the most obvious impact of new homes on the economy, it’s important to realize that it doesn’t stop there,” said NAHB Chairman Granger MacDonald, a home builder and developer in Kerrville, Texas.
“It’s the architects, the heating technicians, the 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.
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.
A previous NAHB study based on 2004-2007 data collected during the housing boom showed somewhat higher spending by home owners overall. But the tendency of buyers to outspend non-moving owners on appliances, furnishings and home improvements was similar.
In the aggregate, most of the demand for appliances, furnishings and remodeling projects in a given year is generated by non-moving home owners, because they outnumber home buyers by such a wide margin.
But new owners’ impact is noticeable — and vital, MacDonald said. “The health of housing — and new home buying — is key to the overall state of our economy.”
Read Siniavskaia’s Eye on Housing blog post on her findings. See the study here.
Do you know a potential home buyer who needs help in buying their first home? The Greater Greenville Association of Realtors Housing Fair is a great opportunity to visit with the professionals and learn what you need to know to successfully navigate the home-buying process.
This year’s event is called “Living the Dream: Going from Renter to Homeowner” and will take place a the TD Convention Center on November 5, 2016 from 9 a.m.-2 p.m. Workshops include:
- Financial Literacy/Credit
- Down Payment Assistant Resources
- Why Use a Realtor?
- Identity Theft
- FHA, USDA Rural Housing, Fannie/Freddie what does it all mean?
- The Process and what to expect: Searching, Making an Offer, Inspections, Comps, and Closing
Admission is free and open to the public. Be sure to share this opportunity with any potential home buyers looking for guidance in buying their first home.
For more information contact the Greater Greenville Association of Realtors at (864) 672-4427.
May is when the flowers are all blooming, the temperatures are rising, and a large number of home shoppers are interested in buying. But the springtime housing market isn’t just for buyers and sellers.
This is the time of year when a large number of home owners are highly motivated to cross off a few items from their home improvement to-do lists.
Last year, Americans spent an estimated $150 billion on owner-occupied remodeling projects. After a somewhat mild start to 2016, the remodeling industry is primed for continued growth as the year progresses – growth that’s sure to be amplified during the month of May when the National Association of Home Builders Remodelers celebrates National Home Remodeling Month.
Remodelers across the country are encouraged to further emphasize the benefits of home remodeling projects and the advantages of hiring a professional to get the job done right the first time.
Throughout the upcoming month, NAHBNow will feature several recent projects, techniques and strategies from NAHB members that have helped deliver more value to their clients and drive more traffic to their business, despite the increasing competition.
NAHB also makes it easy for remodelers to promote their industry with a toolkit of ready-to-use resources to engage consumers with trending remodeling topics such as:
- Benefits of hiring a professional remodeler
- Facts about aging in place
- Basics of green remodeling
- Lists of top remodeling projects
- Suggestions on how to hire a remodeler
A guide on how to get started promoting National Home Remodeling Month is available on nahb.org, along with tips to maximize consumer outreach.
In an effort to advance housing finance reform that will provide certainty and stability to the nation’s financial markets and promote job and economic growth, NAHB has updated its 2012 white paper on this key housing issue.
Why Housing Matters: A Comprehensive Framework for Housing Finance System Reform reflects market developments since 2012 and retains the central tenet of NAHB’s housing finance system reform policy – the creation of a new securitization system for conventional mortgages backed by private capital and a privately funded mortgage-backed insurance fund with a federal government backstop in the event of catastrophic circumstances.
NAHB supports comprehensive finance reform based on the bipartisan Johnson-Crapo bill (S. 1217) approved by the Senate Banking Committee in the last Congress that would gradually transition Fannie Mae and Freddie Mac into a private-sector-oriented system, where the federal government’s role is clear, but its exposure is limited.
The home building industry’s ability to meet the demand for housing and contribute significantly to the nation’s economic growth depends on an efficient housing finance system. However, years after the fact, home buyers and builders continue to confront challenging credit conditions triggered by an overzealous regulatory response to the Great Recession.
While there are many reasons Congress and federal regulators must tackle housing finance reform, some stand out as compelling:
- The Housing Act of 1949 pledged a “decent home and a suitable living environment for every American family.” That principle remains a bedrock for Americans, although delivering on the promise is more difficult in 2015 and beyond.
- Homeownership has been the most effective step on the ladder into the middle class and to create wealth for most Americans since the 1950s, and continues to fill that role while also fulfilling the promise of the Housing Act of 1949.
- Housing is “made in America.” The jobs that home building creates cannot be shipped overseas. Most of the products used in home construction are manufactured here in the U.S. and directly correlate to American manufacturing jobs at all levels.
- A reformed national housing finance policy supports the Housing Act of 1949’s goals. Equally important, fixing an inefficient housing finance system that lacks effective financial safeguards for the nation’s housing and mortgage markets will markedly reduce the probability of triggering another catastrophic Great Recession.
NAHB will continue to work diligently with policymakers to advance housing finance reform that will maintain an appropriate level of government support to preserve financial stability, encourage private capital back into the marketplace and ensure liquidity and stability for homeownership and rental housing.
From The Atlanta Journal-Constitution:
In the past five years, while the population was growing, the number of renters has increased by nearly 6 million. The number of homeowners has dropped by 328,000.
The story explores recently-released Census data on home ownership trends. Read more by clicking here.