The furniture industry may have cause for optimism as we look ahead to 2025. Recent economic trends and evolving consumer behaviors suggest the potential for increased furniture sales, driven in part by improvements in the housing market. Here’s why:
The Housing Market’s Influence on Furniture Sales
Historically, the housing market and the furniture industry have shared a close relationship. When people buy new homes, they often purchase furniture to furnish their space, driving demand in the sector. Following the Federal Reserve’s decisions in September - and then again in November - to lower interest rates, there are signs that housing sales — particularly in the new home market — may rise in the coming years.
Currently, mortgage rates have eased slightly from their peaks, now sitting just above 6%, compared to earlier levels above 7%. Although this is still higher than the historically low rates of just over 3% seen in recent years, economists predict further gradual decreases. By 2025, the Fed’s interest rate is expected to decline to 3.9%, down from its current 4.6%.
This reduction, coupled with efforts to increase housing availability by cutting regulatory barriers, could lead to an increase in housing starts. As more new homes hit the market, the demand for furniture is likely to follow suit.
Trends Driving Furniture Sales Growth
In addition to housing market dynamics, consumer preferences are shaping the furniture industry's future. Consumers are increasingly prioritizing sustainability, seeking furniture made with eco-friendly materials and ethical practices. This shift could lead to higher furniture turnover as homeowners upgrade to align with their environmental values.
With signs of stabilization in the housing market and growing consumer interest in sustainable and high-quality furniture, the furniture industry is poised for growth. By aligning with these trends and leveraging tools like flexible payment solutions, furniture retailers can capitalize on the expected uptick in demand.
Make Most of Sales Growth with Flexible Payment Processing
To prepare for the potential uptick in sales, furniture shops and showrooms should consider adopting flexible payment processing solutions to attract more buyers and enhance the customer experience. For example, services such as CrossCheck’s Multiple Check service allows customers to write several checks, all with the same purchase date. Merchants deposit the approved checks over a specific window (usually 30 days) on dates selected by consumers, then receive guaranteed payment from CrossCheck as each check is deposited. Fees for this service are significantly lower than standard credit card fees and customers don't need to submit to a credit check.
Another CrossCheck service that will serve furniture retailers well is Mobile Pay, which allows for seamless transactions directly on the showroom floor, increasing sales efficiency, all while improving the customer experience.
For furniture businesses looking to seize this opportunity, CrossCheck offers a suite of services designed to simplify transactions, minimize risk, and boost sales. Contact CrossCheck today to learn how we can help your business succeed in this promising market landscape.
