According to a report by Technavio, the home furniture market size in the US is estimated to increase by US$13.32bn between 2022-2027, growing at a momentum of CAGR of 3.7%.
In particular, improving residential construction market is notably driving the market growth, although factors such as the inherent threat from re-used furniture market may impede the market growth.
The growth of the real estate industry in the US is attributed to factors such as the increasing number of households. There has been a significant rise in the number of women joining the workforce and living independently.
As a result, there is a raising need for service apartments and single-story houses. This, in turn, is boosting the demand for home furniture in the country.
The continuously increasing immigrant population in the US is another factor adding to the rapid rise in the real estate industry, fuelling the demand for home furniture. These individuals invest heavily in both real estate and the home furniture market.
The surging demand for eco-friendly furniture is another factor supporting the home furniture market share growth in the US.
Owing to continuous urbanisation and industrialisation, there has been a considerable increase in environmental implications such as global warming. This, in turn, has created an awareness among consumers regarding the benefits of using eco-friendly or green furniture.
The inherent threat from reused furniture market will be a major challenge for the home furniture market growth in the US.
Reused or refurbished furniture has significantly come up as an option for millennials who are just moving out of their houses and have less financial stability. They tend to buy refurbished furniture items at comparatively lower prices, impacting the revenues of the sellers of newly built furniture.
In other words, furniture is no longer a one-time investment. Therefore, this shift in the consumer’s mindset has caused the market to slow down in the last few years.
In addition, there has been a demographic shift, and the baby boomers have started shifting from their bigger apartments to smaller living spaces, which has led to an increase in the discarding of old conventional furniture. The discarded furniture is resold to new home buyers, thus reducing the demand for contemporary furniture items.