Home Furnishings Stores NAICS 44912

Jul 24, 2025 - Dorm/Apartment Furnishings Spending to Rise

• Home furnishings stores may benefit from an expected 5% increase in dorm/apartment furnishings spending in 2025, reaching $12.8 billion, according to an annual back-to-college spending survey by the National Retail Federation and Prosper Insights and Analytics in Home Furnishings News. In addition to dorm or apartment furnishings, the other top back-to-campus spending categories were electronics, clothing and accessories, food, and personal care items. Total back-to-college spending is expected to reach $88.8 billion in 2025, up from $86.6 billion a year ago. While overall spending is on the rise, the per-person spending for back-to-college fell to an average of $1,325 from $1,364 in 2024, which can be attributed to higher-income households continuing to spend while lower-income households cut back across categories due to economic uncertainty. College-bound families are making budget-minded choices, such as buying used or refurbished items and using buy now or pay later services.
• Consumer sentiment, an indicator of discretionary spending, increased slightly in July 2025, rising to 61.8 in preliminary July data from 60.7 in June, according to a report in the Wall Street Journal. The consumer sentiment index from the University of Michigan hit a recent peak in December of 74, buoyed following the presidential election, but dropped to 52.2 in April 2025 as consumers expressed uncertainty about tariff effects and rising inflation. In July, respondents’ inflation expectations for the coming year were an anticipated price increase of 4.4%, which was tracking higher than in January, when respondents expected prices to grow by 3.9%. However, July’s inflation expectation results were lower than June’s, when respondents expected a 5% price increase for the coming year. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.

• The US home furnishings stores industry is projected to grow at a 2.65% CAGR from 2025 to 2029, slower than the overall economy's projected growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The retail and wholesale sectors are driven by consumer spending, along with expenditure by businesses and government. Retail spending could soften with the growth of spending on consumer services. Another factor that may limit consumer spending is higher tariffs on consumer goods. In 2025 and into the forecast period, real disposable income may be supported by continuing nominal wage growth, lower inflation rates, and higher employment levels. Lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer if prices rise due to tariff implementation.
• According to a new report in Retail Dive, the retail sector had 64,319 job cuts in the first four months of 2025, a nearly 300% increase year over year, and the second highest industry for job cuts. The Challenger, Gray & Christmas report found retail job cuts were up almost 80% year over year in April 2025, reaching 7,235. According to Andrew Challenger, an SVP at the consulting firm, “Generally, companies are citing the economy and new technology. Employers are slow to hire and limiting hiring plans as they wait and see what will happen with trade, supply chain, and consumer spending.” The US lost 603,000 jobs in total across all industries, the most since 2020, when over one million job cuts occurred. According to the report, nearly half of the cuts in the first four months were attributed to job eliminations by the Department of Government Efficiency (DOGE).