What Percentage of Income Do Australians Spend on Furniture?

Ever wondered if you're spending too much (or too little) on furniture compared to everyone else? I've been digging through income data and spending patterns to figure out exactly where furniture sits in the typical Australian household budget.

The reality might surprise you. Australian households spend roughly 2.3% of their gross household income on furniture and home furnishings. But here's where it gets interesting – when you look at disposable income (what's left after taxes and bills), that jumps to about 3.4%.

With the cost of living going through the roof and more of us working from home, understanding these percentages has become pretty important for planning your own furniture budget.

The Numbers You Actually Need to Know

Here's what really caught my attention in the data:

• Most Australian households spend 2.3% of their gross household income on furniture and home furnishings
• That becomes 3.4% of disposable income once you account for taxes and essential expenses
• The national median weekly household income sits at $1,770
• Our average annual furniture spending of $3,016 represents about 3.3 weeks of median household income
• Low-income households spend 1.8% of their income on furniture, while high-income households spend 2.8%
• Furniture spending ranks 8th among household expense categories when measured by income percentage

Gross Income vs What You Actually Have Left

Let me break this down in real terms:

Looking at gross income:

• Median weekly household income: $1,770
• Annual median household income: $92,040
• Average furniture spending: $3,016
• Percentage of gross income: 3.3%

Looking at disposable income (the money you actually get to spend):

• After tax and essential expenses, you're typically left with 65-70% of your gross income
• Estimated median disposable income: $60,000-$65,000
• Average furniture spending: $3,016
• Percentage of disposable income: 4.6-5.0%

That's quite a difference, isn't it? The disposable income percentage gives you a much better picture of what furniture purchases actually mean for your budget.

How It Changes Based on What You Earn

Here's something fascinating – the percentage you spend on furniture changes dramatically depending on your income level:

If You're Earning Under $50,000

• Annual furniture spending: $1,800-$2,200
• Percentage of gross income: 3.6-4.4%
• Percentage of disposable income: 5.5-6.8%
• What you're buying: Mainly essential, functional furniture

If You're in the $50,000-$100,000 Range

• Annual furniture spending: $2,800-$3,200
• Percentage of gross income: 3.2-5.6%
• Percentage of disposable income: 4.8-8.0%
• What you're buying: Mix of necessity and style

If You're Earning Over $100,000

• Annual furniture spending: $3,500-$5,000
• Percentage of gross income: 2.5-3.5%
• Percentage of disposable income: 3.5-5.0%
• What you're buying: Premium furniture, regular updates

Here's the kicker: while high earners spend more dollars on furniture, they actually spend a smaller percentage of their income. It's one of those areas where having more money genuinely gives you more flexibility.

Where You Live Makes a Difference

Regional differences in both income levels and furniture costs create some interesting variations across the country:

States Where Furniture Takes a Bigger Bite

Tasmania and South Australia

• Lower median incomes but similar furniture needs to everywhere else
• Estimated percentage: 3.8-4.2% of gross income
• Why it's higher: Limited local options, higher transport costs for getting furniture delivered

The Middle Ground

Victoria and New South Wales

• Median income levels with competitive furniture markets
• Estimated percentage: 3.0-3.5% of gross income
• Why it's moderate: Urban density means more choice, better competition

Where Furniture's More Affordable (Relatively Speaking)

ACT and Northern Territory

• The ACT had the highest median household income at $2,364
• Estimated percentage: 2.2-2.8% of gross income
• Why it's lower: Higher incomes, particularly from resource sector employment

How We Compare to the Rest of the World

I was curious how Australian furniture spending stacks up internationally:

• Australia: 3.3% of gross household income
• United States: 2.8% of gross household income
• United Kingdom: 3.1% of gross household income
• Canada: 3.0% of gross household income
• Germany: 3.5% of gross household income

We're sitting slightly above the international average, which makes sense given our strong housing market and the fact that many of us have been spending a lot more time at home since COVID hit.

How These Percentages Have Changed Over Time

What's remarkable is how stable these percentages have been, despite everything that's happened economically:

2010-2015 Period:

• Average percentage: 3.2% of gross income
• What was happening: Post-GFC recovery, everyone being pretty conservative with spending

2015-2020 Period:

• Average percentage: 3.3% of gross income
• What was happening: Steady economic growth, housing boom in full swing

2020-2025 Period:

• Average percentage: 3.4% of gross income
• What was happening: Work-from-home becoming normal, inflation hitting everything

The slight increase reflects changing priorities rather than just income growth – we're investing more in making our homes comfortable and functional.

When We Actually Spend This Money

Furniture spending as a percentage of monthly income isn't consistent throughout the year:

Peak Spending Months

December-January: 4.5-5.0% of monthly income

• Post-Christmas sales and New Year home refreshing
• Moving season and holiday bonuses hitting bank accounts

March-April: 3.8-4.2% of monthly income

• End of financial year purchases
• Getting ready for autumn

Quieter Months

June-August: 2.5-3.0% of monthly income

• Winter months when people move less
• Focus on essential expenses like heating bills

September-November: 3.2-3.6% of monthly income

• Pre-holiday saving period
• Spring cleaning and minor updates

What's Coming Next

Looking ahead, the percentage of income spent on furniture will probably increase slightly over the next decade:

Why Percentages Might Go Up

Lifestyle changes:

• Work-from-home arrangements aren't going anywhere
• Smaller living spaces need smarter, multi-functional furniture
• We're all more focused on making our homes comfortable

Economic pressures:

• Real disposable income has fallen by about 15% for median mortgagors
• Rising housing costs eating into what's left for other spending
• Furniture prices rising faster than incomes

What I Think We're Looking At (2025-2030)

• Conservative estimate: 3.5-3.8% of gross income
• Moderate estimate: 3.8-4.2% of gross income
• High estimate: 4.2-4.5% of gross income

Practical Budgeting Based on Your Income

Here's how you might want to think about your furniture budget:

If You're Budget-Conscious (Under $60,000 income)

• Target percentage: 3.0-3.5% of gross income
• Annual budget: $1,800-$2,100
• Smart approach: Focus on essential pieces, check out second-hand options, time purchases with sales

If You're Middle Income ($60,000-$120,000 income)

• Target percentage: 3.2-3.8% of gross income
• Annual budget: $1,920-$4,560
• Smart approach: Balance quality and budget, invest in key pieces that'll last

If You're High Income (Over $120,000 income)

• Target percentage: 2.5-3.5% of gross income
• Annual budget: $3,000-$4,200+
• Smart approach: Quality over quantity, designer pieces, regular updates

What This Actually Means for Your Household

From a financial planning perspective:

• 3.3% of gross income is significant but manageable for most households
• It's competing with other discretionary expenses like recreation (which takes up 12.2% of income)
• The stable percentage suggests we all consider furniture a household necessity, not just a luxury

As an economic indicator:

• Furniture spending percentage is actually a decent measure of consumer confidence
• When it stays stable, it suggests household financial resilience
• When it drops quickly, it often signals economic uncertainty

For your own budgeting:

• Plan to allocate 3-4% of your gross income for furniture and home furnishings
• Time major purchases around seasonal sales and bonus periods
• Think of furniture spending as part of your overall home maintenance budget

The Bottom Line

Australian households consistently put 3.3% of their gross household income toward furniture and home furnishings. This has been remarkably stable over time, which tells us that furniture spending is considered necessary rather than purely discretionary.

If you're planning your furniture budget, allocating between 3-4% of your gross income gives you a realistic framework that matches what most Australians are doing while keeping your finances stable.

Understanding these percentages helps whether you're a consumer trying to budget sensibly or a business trying to understand the Australian market. Either way, now you know where you stand compared to everyone else.

Where These Numbers Come From

• Australian Bureau of Statistics: Household Expenditure Survey and Income Statistics
• Reserve Bank of Australia: Household Income and Consumption Analysis 2024
• Grattan Institute: Australian Household Income Analysis 2024
• TechSci Research: Australia Furniture Market Analysis 2024
• Expert Market Research: Australia Furniture and Home Furnishing Market Report 2025