HIGH POINT — U.S. furniture and bedding sales reached an estimated $115.2 billion this year, according to Furniture Today estimates, which are based on consumption and expenditure data from the U.S. Department of Commerce’s Bureau of Economic Analysis.
According to Furniture Today’s estimates, furniture and bedding sales increased 0.6% this year, slower than usual growth. The primary brake on this growth is the COVID-19 pandemic. Furniture store sales took a hard hit in March, April and May. And while sales and demand have been strong in recent months, much of these gains are making up lost ground from this spring.
Behind the numbers
The unemployment rate declined to 6.9% in October as economic activity, previously diminished by the pandemic, continued to resume. Notable gains were made in leisure and hospitality, retail trade, professional and business services, and construction. Furniture and home furnishings stores added an estimated 14,000 jobs in October, according to the U.S. Bureau of Labor Statistics.
U.S. household median income rose to $68,703 in 2019, a 6.8% increase from 2018. For the second year in a row, householders under the age of 25 experienced the largest growth in household income, at an 8.2% increase. Householders between 35 and 44 years of age had nearly the same level of growth at 8.1%.
Households in the West had the largest growth in median household income at 7%, while the Midwest had the slowest growth (4.8%). Median household income increased by 6.1% from 2018 to 2019 in the South, while it grew slightly more in the Northeast (6.8%) over that same period.
After remaining flat at 101.4 in October, Consumer Confidence declined to 96.1 in November. The Expectations Index, based on consumer’s short-term outlook of market conditions, also declined in November, falling from 98.2 to 89.5.
According to Lynn Franco, senior director of economic indicators at The Conference Board, “Heading into 2021, consumers do not foresee the economy, nor the labor market, gaining strength. In addition, the resurgence of COVID-19 is further increasing uncertainty and exacerbating concerns about the outlook.”
Growth ahead
Furniture Today, using estimates developed in conjunction with Easy Analytic Software Inc., believes the U.S. furniture and bedding market will top $143 billion by 2025, a 24.4% growth over the next five years.
Stationary chairs are slated for the largest growth during that period, with sales anticipated to jump from $2.4 billion this year to $3.1 billion in 2025, a 29.5% increase.
As remote work continues to grow in popularity, desks should also have rapid growth over this same period, with sales expected to nearly reach the $7 billion mark by 2025. This 25.5% growth is the second highest, behind stationary chairs, of all furniture and bedding categories.
Furniture and bedding sales across the entire nation are expected to grow by 24.4% from 2020 to 2025. Eighteen U.S. states are expected to have sales exceeding that figure. Utah leads that group, with furniture and bedding sales predicted to jump by 28.2% over the next five years. Idaho and the District of Colombia are next in that group, with Furniture Today estimating 27.2% sales growth for both states.
Eight of the 18 states expecting faster than average growth are in the West; six are in the South; and four are in the Midwest. The trend of rapid growth in the West and South reflect data recently released by the U.S. Census Bureau, which found that Americans are flocking to the West and South. According to data from northAmerican Moving Services, the top states Americans moved to in 2019 were Idaho, Arizona, South Carolina, Tennessee and North Carolina.
Utah is home to the fastest growing major metropolitan area over the next five years, Cedar City. According to Furniture Today and EASI, furniture and bedding sales in the metropolitan area will expand by 35%, the highest growth in the nation among all major metropolitan areas.
The second fastest growing major metro is Midland, Texas, where sales are expected to jump by 32.1%, followed by Pullman, Wash. (31.9%).
About the numbers
The 2020 furniture and bedding estimates begin with furniture retail sales figures developed by Furniture Today. Estimates are then coupled with data from EASI’s extensive database of demographic and sales information, including statistics from the U.S. Census Bureau’s American Community Survey.
Projections for 2025 are determined using statistical modeling that accounts for estimated changes in income and population levels, age and ethnicity, as well as household growth and formation adjustments, assumptions of inflation and retail store changes by county level. Changes in future economic conditions are not part of the equations.
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December 28, 2020 at 08:35PM
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US furniture and bedding sales will top $115 billion in 2020 - Furniture Today
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