The wave of expenditures home buyers make after purchasing a property provides an economic boost to local markets and supports new goods and services, a new study shows. In the first year of homeownership, a new owner will spend about $10,601 on appliances, furnishings, and home improvement projects, according to
an analysis by the National Association of Home Builders.
Homeowners in the first two years of ownership spent an average of $4,500 more than owners who had lived in their homes longer, according to the study. “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,” says NAHB Chairman Granger MacDonald. “It’s the architects, the heating technicians, the lumber suppliers. 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.”
MacDonald says new homeowners have a noteworthy impact on the economy. “The health of housing—and new-home buying—is key to the overall state of our economy,” he says.
Source: “Spending Patterns of Home Buyers: Appliances, Furnishings, and Property Alterations,” National Association of Home Builders (2017)
