Slowest Housing Market in Years Is Weighing on Consumer Spending
- Sofa sellers go bust, prospective homebuyers cut spending
- Average household spends $8000 more over two years when moving
Residential homes in Lithonia, Georgia.
Photographer: Elijah Nouvelage/BloombergThis article is for subscribers only.
Plunging US home sales are having a ripple effect on consumer spending, as fewer Americans are moving into houses that need to be outfitted with furniture and appliances.
The effects are visible across the economy. Spending on furniture and related items fell nearly 12% from the year-earlier period in October. Home goods sellers including Z Gallerie and Serta Simmons Bedding have filed for bankruptcy this year, citing weaker demand, and more are probably coming. Williams-Sonoma Inc.’s chief executive said last month that consumers are hesitant to spend on expensive furniture. Home Depot Inc., the hardware and appliance store, said its revenue will likely drop this fiscal year.