First-Time Home Appliance Buyers

Goals

To inform a larger market initiative by providing the demographics of the largest segment of first-time home appliance buyers.

Early Findings

Largest Segment

  • Home appliance buyers comprise majorly of new home buyers, as they have the largest annual spend on appliances ($3,094) compared to existing home buyers ($1,889) and non-moving owners ($1,182).
  • According to the Builder Practices Survey, 66.7% of new homes do not come with clothes washers and dryers, and 36% do not have refrigerators.
  • The appliance budget for new home buyers consists mainly of "washers/dryers, lawnmowers/other yard equipment, and computer hardware/systems."

DEMOGRAPHICS

Age

  • The largest segment (34%) of home buyers over the last four years consists of people aged 36 years and younger. This group of buyers also constituted the highest rate of first-time homebuyers at 66%.
  • People aged 37 to 51 years comprised 26% of first-time buyers.
  • As of 2017, the median age for a first-time homebuyer in the US was 34 years.

Race

  • White Americans constitute the largest share of first-time homebuyers at 66%, followed by Hispanic Americans (14%), Asian Americans/Other (11%), and African Americans (9%).

Marital Status

  • Just over 50% of first-time homebuyers are married, compared to 35% who have never been married.
  • According to a National Association of Realtors report, "about 15% of millennial homebuyers under 29 years purchased a home as an unmarried couple."

There was no precompiled information stating the demographics of the largest segment of first-time home appliance buyers or even establishing the largest segment. However, by analyzing the Consumer Expenditure Survey (CES), we determined that new homebuyers have the highest spend on home appliances. More so, the most sought-after appliances were those not pre-installed with the house, which would make for first-time purchases. As such, we provided the demographics of first-time homebuyers to represent the largest segment.

Proposed next steps:

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