Report Summary

This report analyzes the economic and demographic forces impacting the demand for household furniture in the United States.  The study is finely segregated by product categories and geographical regions.  The author of the book comes to some interesting and unexpected conclusions which need to be taken into account to gain a thorough appreciation of the present and future course of the American furniture demand.  Forecasts are provided to 2016.

The 2006 value of the furniture market in the United States amounted to an estimated $84.5 billion measured at retail prices.  Of this, 35.1% is upholstered furniture, 30.4% is wooden case-goods (mainly bedroom furniture), 24.7% is mattresses and foundations, and the remaining 9.8% is metal and other furniture (mainly outdoor furniture).

Measured at manufacturers' prices domestic household furniture sales reached an estimated $40.1 billion in 2006 or about 47.5% of the total dollars spent by U.S. households on furniture.  The $44.4 billion difference between the prices received at the retail level and the prices received at the manufacturers' level represents a combination of transportation costs, wages and other costs at the retail level, the retailer's profit margin, plus all sales taxes.

Over the last two decades household furniture purchases increased significantly from $32.4 billion in 1986 to $84.5 billion in 2006, or 160%.  In other words, sales increased at an average annual pace of approximately 5.2% over this period.  Growth has been above this average in 2006, standing at a healthy rate of 5.8%.  Some of the growth during the past 20 years was due to rising prices.  If expressed in constant 2000-dollar terms, the increase between 1985 and 2005 was 143%.

The number of households in the United States will grow by about 13.8% over the next decade (that is about 1.3% per year).  This pace is a bit faster than the 7.6% pace for the total population.  We expect real disposable income per household will also increase by about 39.4% (or slightly more than 3.4% per year) over that period.  Thus total real disposable income will grow by about 53.2% between 2006 and 2016.

Based on these assumptions, we expect furniture spending growth to continue throughout the projection horizon.  However, it will decellerate from an annual real rate of 5.6% in 2007 to 5.5% this year, and 5.5% next year.  Thereafter, it will further slow down to a rate of about 3.4% in 2016.  Thus, real household furniture spending - in constant 2006 dollars - will grow by 53.2% from $84.5 billion in 2006 to $129.4 billion in 2016.

Table of Contents

Section 1    Average Household Expenditures

1.1    Average Household Expenditures by Major Consumption Category
1.2    Average Household Expenditures by Furniture Category
1.3    Average Consumer Expenditures by Household Category
    1.3.1  Average Consumer Expenditures by Income
    1.3.2  Average Consumer Expenditures by Age of Maintainer
    1.3.3  Average Consumer Expenditures by Type of Tenure

Section 2    Market Size

2.1    Overall Market Size
2.2    Market Size Over Time
2.3    Market Size by State
2.4    Market Size by Metropolitan Area

Section 3    Forecast

3.1    Forecast of the Overall Market
3.2    Forecast of the Market by State
3.3    Forecast of the Market by Metropolitan Area

Index

Table of Exhibits

1.  The percentage share of after-tax average household incomes allocated to saving and spending on major goods and services categories, 1986 to 2006.
2.  The percentage share of after-tax average household incomes allocated to furniture spending, 1986 to 2006.
3.  The percentage share of after-tax average household incomes allocated to furniture spending in constant dollars, 1986 to 2006.
4.  Estimated average household furniture expenditures (including taxes) by individual item in 2006, in dollars per household.
5.  Average consumer spending on household furniture by income group, 2006.
6.  Number of households, average income, average spending on household furniture and other demographic characteristics by age of household maintainer in 2006.
7.  Number of households and average spending per household on household furniture by type of tenure in 2006.
8.  Estimated total United States market for household furniture at retail prices including taxes by product category in 2006.
9.  United States market for household furniture at retail prices by component in 2006.
10.  After-tax income in Billions of constant dollars, 1986 to 2006.
11.  United States market for household furniture in Millions of current dollars from 1986 to 2006 and its percentage change from year to year.
12.  United States market for household furniture in Millions of constant dollars from 1986 to 2006 and its percentage change from year to year.
13.  Estimated United States market for household furniture by state in 2006
14.  Estimated United States market for household furniture by metropolitan statistical area in 2006.
15.  Consumer spending on household furniture from 2006 to 2016 in constant 2006 dollars and percent change from year to year.
16.  Consumer spending on household furniture by state from 2006 to 2016 (Million of constant 2006 dollars)
17.  Consumer spending on household furniture by the most populated metropolitan statistical areas in millions of constant 2006 dollars from 2006 to 2016.