Housing Market Insights, Retail Results, and Furniture Manufacturing Shake-Ups

Originally published November 20, 2024. This version was rebuilt from the Census Bureau's new residential construction report, Target's third-quarter release and Dorel's third-quarter release for the FIN archive, and the facts are as of that date.

A week before Black Friday 2024, the data showed plenty of new homes being finished, a big-box retailer leaning on digital sales and a furniture maker consolidating production.

The short version

• Census and HUD said October completions were 1,614,000, 16.8% above October 2023.
• Target said comparable sales increased 0.3% as store comparable sales fell 1.9%.
• Dorel said it began closing its Tiffin, Ohio RTA plant and moving production to Ontario.

Housing market trends

Privately owned housing completions ran at an annual rate of 1,614,000 in October, 4.4% below September but 16.8% above October 2023. Single-family completions were 986,000.

Housing starts fell to 1,311,000, 3.1% below September and 4.0% below a year earlier, and permits were 1,416,000.

Finished homes drive furniture purchases in the months after move-in, so strong completions supported demand into early 2025 even as new construction slowed.

Retail performance

Target said third-quarter comparable sales increased 0.3%, with comparable store sales down 1.9% and comparable digital sales up 10.8%. Guest traffic grew 2.4%.

For the fourth quarter Target guided to approximately flat comparable sales, a cautious holiday outlook from a major seller of home goods.

Manufacturing developments

Dorel said Dorel Home revenue fell 14% from a year earlier, with gross margin down 500 basis points on promotional pricing and lower production efficiency at its ready-to-assemble plants.

During the quarter Dorel began closing the RTA plant in Tiffin, Ohio and moving production to Cornwall, Ontario, with one-time charges of US$2.6 million in cost of sales and US$1.1 million in restructuring.

Its chief executive said the company was cutting costs to right-size the business to current realities.

Looking ahead

Housing completions offered support for furniture demand, but retailers were planning for a flat holiday and makers were still consolidating. The recovery would depend on how fast new homeowners started buying.

Related on FIN

• Move-In Furniture Tickets Are Drying Up
• Furniture Orders Rose 9%. Factories Still Aren't Hiring for It.

Sources

• U.S. Census Bureau and HUD, New residential construction, October 2024
• Target Corporation, Third quarter 2024 earnings (SEC exhibit 99)
• Dorel Industries, Third quarter 2024 results (Nov. 14, 2024)