Why furniture prices have climbed and how tariffs stack up : NPR

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What is this item?

Furniture

How has the price changed since the pandemic began?

Bedroom furniture prices have increased 11% since February 2020, according to the Bureau of Labor Statistics. Prices for furniture for the living room, kitchen and dining room increased by 25%.

Why has the price increased?

Like all industries, furniture manufacturers and retailers face higher costs: utilities, insurance, wages. Large price hikes occurred during the pandemic as buyers… rushed to buy home office desks and patio sets, and shipping costs have increased.

But if you ask furniture industry insiders, the first thing they'll tell you is that furniture prices have actually risen slower than overall inflation, which has risen nearly 26% since February 2020.

Then experts will notice that prices have dropped from their 2022 peak. And then – as David Koehler did – they will say the popular saying:

“In 1984, you could buy a sofa for $399, and today you can still buy a sofa for $399,” says Koehler, who runs the Johnny Janosik Furniture chain of stores in Delaware.

Of course, not everyone needs a $399 sofa, but the fact that it still exists sets furniture apart from other big-ticket items like cars or appliances.

Foreign competition has led to lower prices

Leaving aside high-quality wood products and handcrafted crafts, mass market furniture sellers are feeling intense pressure to lower prices.

“The barriers to entry are very, very low, and the furniture business is incredibly fragmented,” says Bill McLaughlin, editor-in-chief of the trade publication Furniture Today.

Plus, furniture sellers aren't just competing with second-hand items, but with any big-ticket plans, like travel or home renovations.

And the race for lower prices has led to the relocation of a large part of industry abroad.

“Manufacturing uses cheap labor. This has been true for 60 years,” says McLaughlin. “Because labor is a very large component of the cost of a product.”

Wages in the U.S. tend to be much higher than abroad, in addition to the higher costs of complying with U.S. environmental standards. Thus, even in domestic furniture production centers in Mississippi or North Carolinamany components—fabrics, handles, and electronics like your chair's power button—still come from overseas, mostly China.

Enter: tariffs

During his first term, President Trump's tariffs made it more expensive to ship furniture from China, so much of the production was moved – not to America, but to Vietnam.

Trump has raised tariffs on imports from nearly every country this year. And he's determined new double-digit tariffs specifically for kitchen cabinets, dressing tables and upholstered furniture.

Furniture giant Ashley Furniture in June raised the price most of its products as a result of tariffs. The Home Furnishings Manufacturers Association, an industry trade group, warned of a cumulative increase in costs for both retailers and shoppers.

What do people do about it?

As imported furniture becomes more expensive, American-made furniture may start to look more attractive in comparison. But seller Koehler is worried about how buyers will react.

“Consumers, when we get feedback, they say, 'We'd like to buy American,'” he says. “But when they vote with their dollars and see that this item is $500 and that item is $1,200, they say, 'I guess I can only afford $500.' They end up buying imported goods anyway just because there is such a price difference.”

Many buyers find themselves in the same position as Erin Cummins in Connecticut: watching their costs rise for other, more important expenses, such as health insuranceor car insuranceor products.

“Every time we have company over, I look at this furniture and think, ‘I really need to replace this,’” says Cummins, whose worn sofas are beloved by three dogs and three children. “I overpriced it a little, but every time I do it I get shocked and walk away.”

Cummins says that at this point, she's no more happy with the cost of new furniture than the condition of what she already has, and her sofas—still standing even when covered with a blanket—seem more stable than her budget.