Where does the

money go? First, furnishings, from sofas, chairs

and tables to linens, rugs and blinds. Buyers of

newer homes spend more than four times as much on

furnishings as non-moving owners during the first

year of home ownership - nearly $3,700

compared to $783. Living room, kitchen, dining

room and bedroom furniture is high on homebuyers'

shopping lists, along with blinds, curtains, and

carpeting.

Property

alterations and repairs account for an average of

just over $3,000 in spending for the typical new

homebuyer's first year. As you might expect,

additions, decks and porches are among the

high-ticket items on the list. Painting, fences,

driveways and walks are common first year

expenses, while non-moving owners are more likely

to spend their money on kitchen and bath

remodeling, repairs and roofing. Buyers of older

homes spend the most on remodeling and repairs,

including plumbing fixtures and heating equipment

replacement.

Appliances account

for about $1,900 in spending in the first year

after a new home purchase. Interestingly,

computer hardware, which might not fit the

traditional concept of an appliance, makes up the

largest share of spending in this category at an

average cost of $249. Lawn mowing equipment,

refrigerators, stereo equipment and television

sets (items usually not included in the price of

a new home) account for a high percentage of

appliance spending.

The impact of home

building on the nation's economy is stunning: the

construction of 1,000 single family homes

generates just under $80 million in wages and

$42.5 million in tax revenues and fees. NAHB's

study shows that after homes are built, homebuyer

spending continues to benefit local economies,

from landscaping and contracting businesses to

appliance and furnishings retailers.

(Jeff Betsill,

owner of Jeff Betsill Homes, is president of the

Home Builders Association of Midwest Georgia,

which serves a membership of approximately 440

builders and associate members in Fayette,

Coweta, Spalding, Heard and Meriwether Counties.)