More Americans Plan to Purchase in Next Four Months

The number of Americans who purchased a home or apartment in the past four months remained slim, but the New York Federal Reserve Bank’s survey found many more Americans are planning to purchase within the next four months. Additionally, the New York Federal Reserve Bank’s Survey of Consumer Expectations found monthly household spending increased slightly in December, reports the National Association of Home Builders. Many households report making at least one large purchase during the last four months, but the share remains under pre-pandemic levels. The slight growth does signify consumers are cautiously spending more.

Looking deeper, the proportion of households that bought electronics and vehicles over the past four months increased and was nearly back to the levels before the pandemic, while the shares in other categories decreased. Though the shares of households that bought home repairs and house or apartment declined 2.6% and 1.6% in December, both were still higher than December 2019 level. This is in line with an NAHB analysis which showed construction spending on improvements grew substantially in 2020. Meanwhile, the percentage of household spending on vacation fell to another series low.

Despite the increase, the proportion varied regionally. The Northeast was the only region that saw an increase in the percentage of households spending on home repairs from August to December. On a year-over-year basis, shares in home repairs grew in the Northeast and the West. Meanwhile, the percentage of households spending on house or apartment fell in the South and the West over the past four months, but slightly increased in the Northeast and the Midwest. On a year-over-year basis, shares of home purchase rose in the Midwest and the South but declined in the Northeast and the West.

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