Spending for youth bedroom furniture this year can top $1.1 billion if the 3.5 million households that plan to make a purchase follow through on their plans.
By far, most of the households purchasing youth bedroom this year — 84% — are under age 45. Almost three-quarters are young parents, the head of the household is under 45 and the youngest child is under age 6, or middle parents, the head of the household is under 45 and the youngest child is over age 6 (see pages S4 and S6).
The best prospects for youth are households under age 34. Those under age 25 are planning to buy youth bedroom at a rate three times higher than their presence in the national population, while households in the 25-to-34 age range are planning to buy youth at a rate 2.7 times higher.
The age of the parents is reflected in their household incomes — a third of the households that plan to purchase youth bedroom furniture this year have incomes under $30,000. But more than a fifth have household incomes of $75,000 or more.
These lower income levels are also reflected in the amount that they plan to spend — a national median of $300.
For households with incomes $40,000 or less (they comprise 47% of the households planning to make a purchase), the median planned spending is only $200. It's only when income levels top $75,000 that the planned spending tops the national median. At that level, the median planned spending reaches $500.
Households where the household head is under 25 plan to spend a median of $200 this year on youth bedroom furniture, while budgets for households in the 25-to-34 age range are identical to the national median of $300.
The regional equation
Westerners and Southerners are planning to purchase youth bedroom at rates higher than their Midwestern and Northeastern counterparts. But Westerners have smaller budgets this year — a median of $200.
In 2000, Western households spent a median of $250 on youth bedroom, slightly under the national median. It wasn't until household incomes in the West hit $75,000 that spending reached $300.
In the South last year, spending for youth bedroom hugged the national median until household incomes reached $40,000. This year, it's not until incomes reach $75,000 that planned spending by Southern households exceeds the national median at $500.
On the other hand, there may be more elasticity in budgets in the Northeast and Midwest where proportionately fewer households plan to buy youth bedroom.
Planned budgets in the Northeast this year match the national median. Last year, median spending began to exceed the national median starting at the $40,000 level. This difference was significant – households with incomes between $40,000 and $49,999 spent half again as much as the national median.
This year in the Northeast, a household income of $50,000 or more must be reached before planned spending amounts exceed the national median. Again, the differences are significant, reaching a high of $700 for households with incomes of $100,000 or more.
In the Midwest, median spending for both last year and this year exceeds the national median at the $40,000 plus income level. In 2001, budgets for youth bedroom reach a high median of $500 for households with incomes of $75,000 or more.
| Target populations | ||||
|---|---|---|---|---|
| These groups plan to purchase youth bedroom furniture in 2001 at a rate higher than their proportion to the region. | ||||
| Plan-to-buy index*: | ||||
| Northeast | Midwest | South | West | |
| Age | ||||
| Less than 25 years old | 260 | 338 | 314 | 281 |
| 25-34 years old | 271 | 276 | 283 | 250 |
| 35-44 years old | 212 | 159 | 180 | 189 |
| Lifestage | ||||
| Young parent | 474 | 458 | 455 | 412 |
| Middle parent | 242 | 222 | 184 | 212 |
| Household Income | ||||
| $20,000 - $29,999 | 117 | 101 | 103 | |
| $30,000 - $39,999 | 109 | 121 | 130 | |
| $50,000 - $74,999 | 122 | 104 | 114 | 151 |
| $75,000 - $99,999 | 121 | 120 | ||
| $100,000 or more | 127 | |||
| *An index of 100 = planning to buy at same rate as the group's proportion to the region's population | ||||
