Industry UpdatePosted 07/12/2017
From record-breaking stock prices to low unemployment, the U.S. economy is humming nicely. And, recent data from the National Association of Homebuilders (NAHB) offers another reason – in addition to more jobs – why home building is a key driver of the overall state of a healthy economy.
Released earlier this month, the NAHB’s new consumer spending report revealed that new homebuyers, in their first year of ownership, spend about $10,601 on appliances, furnishing and home improvement projects. That’s about 2.6 times more than other homeowners in a typical year.
Why is this important? While homeowners in general generate much of the demand for furnishings, appliances and remodeling projects in a given year, new owners typically spend about $4,500 more than the average homeowner who has been in their home awhile.
“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,” said NAHB Chairman Granger MacDonald in a statement.
Locally, this is a big deal because new-home sales in the Phoenix-area rose 22 percent from mid-April to mid-May, more than any other period in the past decade, according to Belfiore Real Estate Consulting, a full-service market research firm specializing in residential data.
The future is bright, too, as Phoenix continues to attract large companies like Intel Corp., UPS and Indeed.com, all of which have announced plans to expand in the Valley, adding about 11,440 jobs. That’s, roughly, a 71 percent increase from the first half of 2016, according to CBRE Group Inc.
More jobs mean new homebuyers, which in turn will increase spending on all fronts, including home-improvement expenditures, fueling an already-healthy economy.
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