by With finances being a major concern, the 18-29-year-old age group primarily purchases furniture based on price
HIGH POINT — Welcome to our latest edition of Consumer Insights Now, which offers a window into the mindset of the Gen Z consumer ages 18-29, namely their approach to furniture purchases and homebuying. The research is sponsored by Bread Financial.
A key takeaway in this initial report — the first of five running each Monday starting Sept. 14 and going through Oct. 12 — is that finances are a major concern for half of these consumers and that 55% have delayed a major purchase such as furniture because of their financial situation.
Of course, furniture is still a need for this age group. However, 74% said they only purchase when the need is greatest, with six in 10 purchasing based mainly on price and trading up when they need to replace worn-out furniture and only when their financial situation improves.
Also, only two out of 10 own a home, accounting for just 4% of all homebuyers, with most being under extreme financial pressure to afford a home. More than half said they can’t afford a home in the current economic environment.
Other highlights of the report include the following:
+ 23% of those surveyed plan to buy a home in one to two years.
+ 38% plan to buy a home in three to five years.
+ 22% plan to buy a home in six to nine years.
+ 11% plan to buy a home in 10 years or more.
+ 33% said they plan to buy a home with two to three bedrooms; 40% plan to buy a home with three bedrooms; 16% said four bedrooms; and 4% said five or more bedrooms
This presents a unique opportunity for furniture retailers who are trying to reach younger segments of the population. Does it mean providing products at lower prices? Smaller scale? With more attractive financing?
To succeed with this generation, it likely means a combination of these and other strategies plus a knowledge of what type of products to market.
Sofas were the No. 1 purchase so far this year, followed by primary bedroom furniture, mattresses and area rugs. For the balance of the year, planned purchases include sofas followed by primary bedroom, lamps, area rugs and occasional tables.
The survey also provides an overview of Gen Z’s current financial situation along with areas of financial concern including food and gas prices; paying monthly bills and not saving money; health care costs and credit card debt; and college tuition costs and student loans.
That said, furniture spending ranked at No. 5 on a list of priorities behind health care expenses, family expenses such as college and wedding costs; new clothes and saving for retirement, but ahead of credit card debt, a new car, travel and vacation, entertainment such as concerts and sporting events, and student loan debt.
Also, as many of us also have experienced earlier in our lives, many in this age group — about 73% — have received hand-me-down furniture. In order, this has included sofas, accent chairs, mattresses, dining room furniture, kitchen furniture, lamps, office furniture, outdoor furniture and area rugs.
Finally, the survey also lends insight into activities for this generation, ranging from watching movies and playing video games to entertaining family and friends both indoors and outdoors.
As always, we hope this research lends some key insights into the minds of this group of consumers. As the first of five weekly reports it will be followed by:
+ Sept. 21 – Generation Z Buying Habits and Attitudes
+ Sept. 28 – Generation Z Furniture Shopping
+ Oct. 5 – Gen Z Furniture Buying Part 1 (Focusing on the appeal of Amazon and trading up to better quality furniture)
+ Oct. 12 – Gen Z Furniture Buying Part 2 (Focusing on known furniture brands, financing options and working with designers)
