WASHINGTON — The U.S. Census Bureau and the U.S. Department of Housing and Urban Development announced new residential construction statistics for April 2022 which reflected a five-month low. Single-family permits dropped 4.6% to 1.1 million units and multi-family units permits fell 1%.

In addition, The Wall Street Journal reports that household savings rates in April fell to 4.4%, the lowest level in 14 years. The Journal attributes this to consumers starting to use their savings to offset cost increases.

“We have finally reached the point where households are dipping into their $4 trillion of excess savings,” said Stephen Stanley, chief economist at Amherst Pierpont.

The combination of these factors may cause decorating dreams to be put on hold until consumers’ financial situations change. As furniture manufacturers reach the end of their backlogs, the lack of new housing starts, coupled with interest rate hikes and a slowdown in home sales may have a dampening effect on the need for big-ticket furniture to fill empty rooms.

Jean Marie Layton is senior editor for upholstery at Furniture Today. A design and furniture aficionado, she has worked as a writer/editor in industry and non-profits, in academic administration and in retail furniture sales. She pursued a master’s degree in the history of design at Parsons/Cooper-Hewitt and has a BA in history from Mount Holyoke College and an MA in liberal arts from Stanford University. Reach out to Jean Marie with your story ideas, tips and more at jlayton@furnituretoday.com

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