What Is the Cost of Furnishing a New Home?

Moving into a new home can already be a significant financial burden. When you add the cost of furnishing it, these expenses can quickly pile up if you're not properly prepared. Whether you're buying or renting, creating a furniture budget is a crucial part of planning for the overall cost of relocating. However, because there are many factors involved—such as the size of your home, its location, and its design—determining the exact cost to furnish a house can be challenging. To help, we've used average pricing as a reference and consulted experts for advice on creating a practical and tailored furniture budget. Here's what to expect and consider when planning your home's furnishing expenses.

Estimated Cost of Furnishing a Home

As reported by Home Advisor, the national average for furnishing a house is approximately $16,000. However, the cost can vary greatly, ranging from $3,500 to nearly $100,000. The lower end reflects budget-conscious furnishings in smaller homes like studios and one-bedroom apartments, while the higher end reflects the cost of furnishing larger three- or four-bedroom homes with high-end luxury items.

"The cost of furnishing a new home is a complex matter and obviously varies based on the house size and the quality of furnishings," explains Molly McGinness, a renowned interior designer based in Cape Cod. "The quality of furnishings can range from custom, high-end pieces to more affordable, trendy options. In general, most people are taken aback by the overall cost of furnishing an entire room."

In addition to the quality of furniture, there are several other factors that influence the cost: the size and layout of the room, delivery charges, assembly fees, and any bulk purchasing discounts from a specific supplier or manufacturer. When planning your budget, make sure to consider these additional costs beyond the furniture itself.

Factors That Impact the Cost of Home Furnishings

Room size and layout

The larger your home, the more expensive it will be to furnish. For instance, a small living area might only require a compact two-seater, but a bigger room could need a seven-seater sectional, an ottoman, and a side table. It's not just about square footage—factors like the number of windows and wall angles also affect how and where furniture should be placed, as well as how much is needed to make the space feel comfortable. To plan effectively, sketch a layout of each room and experiment with different furniture configurations before making any purchases.

Furniture quality

Not everyone is furnishing their forever home, so it's important to consider how long you really need your furniture to last. Investing in high-quality pieces is worth it if you're planning to keep them for decades. However, if you're expecting to move in a few months or years, it's better to opt for more affordable options. Achieve the right balance by mixing premium items with budget-friendly choices. If you're patient, waiting for sales on durable pieces can also help you save without compromising on quality.

Delivery costs

While smaller items can easily fit in your car, many home furnishings are large and require delivery by truck. From mattresses to bed frames to couches, don't forget to factor in delivery fees, which are added to the item's price. If you're ordering from overseas or having items shipped long distances, additional freight charges will apply. To minimize costs, look for online retailers that offer free delivery, or purchase multiple items from a single supplier to reduce shipping expenses.

Assembly costs

If you're handy with DIY projects, you can save a lot of money, but there are some items that are best left to professional assembly. Some furniture comes with simple instructions, but the actual process can still be time-consuming and physically demanding. Many delivery services also offer assembly for complex items, such as hydraulic furniture, modular units, lighting, and upholstered pieces. If you're furnishing an entire home, consider the cost of hiring a local handyman to help with the setup.

How to Save Money on Home Furnishings

Home and real estate investor Chloe Cohen suggests thinking of the design process in phases. Phase one, she explains, is the essentials: necessary pieces like beds, sofas, tables, desks, and chairs. "Phase two is the decor, such as rugs, curtains, and throws," she says. "Phase three is the finishing touches like knick-knacks." To avoid overspending, break down each phase and buy according to your budget.

For each phase, you can find deals and bargains everywhere—from large stores to custom-made items to flea markets. By following this organized approach, you'll allocate your budget toward the most needed items first. Once you've secured the must-haves, you can move on to items that add aesthetic value. If any piece doesn’t work out, you can return it for a refund, but be mindful that thrifted items or sale goods may not be eligible for returns.

McGinness points out that you don’t need to spend the same amount on every room. "Spend less on rooms that won’t be used frequently," she advises. For example, the guest room can often be furnished more affordably than the master bedroom. Another way to think about it is "cost per use." If an item will be used daily, such as a bed or a sofa, consider its value based on its cost per use, not just its current price. Decorative items, like mirrors or seasonal pieces, should be priced according to their true worth rather than the initial price tag.

More Considerations When Furnishing a Home

The total cost of furnishing your home may increase if you don’t have much time to search for items and set them up. If time is more of a priority than cost, working with an interior designer could be a good choice. "Interior designers know which manufacturers offer fast shipping programs and when it's best to customize with trade-only sources or buy off-the-shelf from a local store," McGinness shares.

Finally, Cohen suggests evaluating whether renting or buying your furniture makes more sense for your situation. Companies like Cort and Feather can help you get settled quickly if you're on a tight timeline. These services provide fully furnished rooms or individual items. Renting can also be a temporary solution while you wait for permanent pieces to arrive. However, remember that keeping rental furniture for an extended period might end up costing more than simply purchasing it.