Americans Are Spending Less On Holiday Decorations In 2021

• The average American reported spending a median of only $75 per year on holiday decorations in 2021.
• People are spending less on holiday decorations this year. In 2020, 25.1% of respondents reported spending less than $100 on decorations each year. In 2021, that increased to 61.3% of respondents – a 36-point increase in people spending less money.
• In 2020, 22.4% of respondents reported spending over $500 on holiday decorations. This year, that number plummeted to 3.8%.
• Millennials spend the most on holiday decorations each year, while Baby Boomers spend the least.

As trees are trimmed, Christmas music hits airwaves and the weather cools, holiday spending is heating up.

According to the National Retail Federation, U.S. consumers are planning to spend nearly $1,000 on holiday-related purchases this year, including gifts, food and decorations. Last year, holiday spending increased dramatically from previous years, according to NRF, as pent-up demand from a year spent at home drove holiday sales in the 2020 holiday shopping season. This year, the Coronavirus pandemic remains a factor, in large part due to the supply chain issues it’s created for holiday gifts and decorations which could cause an early frenzy in retail sales, but not necessarily in winter holiday decoration spending.

What will this year bring for consumers’ wallets? Rocket Homes℠ recently surveyed 2,059 Americans to see how much they spend on holiday decorations each year. The findings suggest that many are scaling back their holiday decoration spending, offering more ways to spend their holiday budget.

Americans Are Spending Less On Christmas And Holiday Decorations

In 2021, survey respondents reported spending less on holiday decorations than they did in 2020. Overall, respondents reported in the 2021 survey the median amount of money they would spend on holiday decoration is $75 per year.

A much larger share of respondents said they’re spending under $100 on decorations this year. In 2020, just a quarter of respondents reported spending less than $100. In 2021, 61.3% said the same, as more people moved out of the higher spending categories. Last year, 22.4% of respondents reported spending over $500 on Christmas or holiday decorations. This year, that number plummeted to 3.8%.

Why might people be spending less this year? The COVID-19 pandemic is still a concern for consumers, as is the inflation it’s been driving and its impact on their personal finances. As prices on consumer goods increase, it may be that holiday shoppers are looking to tighten their belts and save for necessities, rather than spend precious cash on things like lights and ornaments.

Another possible explanation is that spending last year was inflated due to the pandemic. By the end of 2020, more Americans worked from home, forwent travel and spent less at restaurants – and they were desperate for ways to instill some extra cheer into a holiday season that capped a year of anxiety and gloom. This year, that urge may be less present, as life slowly starts to look more like it did before the pandemic hit.

Millennials Are The Biggest Holiday Decoration Spenders

Of the three generations surveyed, millennials reported spending the most on their holiday or Christmas decorations.

Millennials reported spending a median of $100 each year on decorations. Generation X said they spend $75 per year, and baby boomers said they spend $50.

In 2021, the millennials generation includes individuals ages 25 – 40. Many of them are in or entering their prime spending years. They have more disposable income than they did when they were younger and are less likely than older individuals to have several decades’ worth of holiday decorations saved up in storage.

How Do Kids Impact Holiday Decoration Spending?

It’s common knowledge that households with kids spend more than those without, and that extends to holiday decoration shopping. Households with children spend 70% more on holiday decorations than those without children. Individuals in households with children reported spending a median of $100 each year on holiday decorations, while those without children spend only $59.

Households with children are also more likely to start decorating early for the holidays. Of those who have kids in their household, 20% reported that they start decorating before Thanksgiving, compared to just 13% of households with no kids.

Which Decorators Spend The Most Each Year?

Everyone has their preferred decorating style. Some go more traditional, with classic ribbons, nutcrackers and lots of red plaid, while others go more modern or Scandinavian, with minimalist decor and neutral colors trimming their trees. Those looking to stand out or eschew tradition might even opt for things like bedazzled stockings, pastel wrapping paper or brightly colored artificial trees. But does their chosen decorating style have an impact on how much a person spends on holiday decorations each year?

The data says that it just might. Those who choose more traditional tree adornments tend to spend more overall on their holiday decorations.

Those who reported decorating their trees with tinsel, candy canes, popcorn and ribbons all spend a median of $100 each year on decorations, compared to a median of $80 for those who reported using LED lights or garland, and $75 for those who said they use non-LED lights and ornaments.

Additionally, those who put a religious symbol atop their tree tend to spend more overall on holiday decorations: a median of $125 per year.

Stars were the most popular tree topper, and those who use them reported spending a median of $75 on holiday decorations. Angels were the next most popular choice, and those who top their tree with them also spend $75 per year on decorations.

Of those whose tree topper of choice wasn’t listed, many reported using Santa or big bows as their tree toppers. This group also spends a median of $75 per year on their holiday decor.

When Is Too Soon To Decorate for Christmas and the Holidays?

Every year, shortly after Halloween, a ferocious debate breaks out: is it too early to start decorating for the holidays yet?

While the majority of folks are decorating early in the season, few are going so far as to break out the ribbons and garland before Thanksgiving.

74.4% of holiday decorators reported that they start putting up decorations either right after Thanksgiving or at the beginning of December.

However, the next largest group was the “before Thanksgiving” crowd: 14.9% said they decorate before Turkey Day.

Only a few people – a total of 10.8% of respondents – said they decorate in mid- to late December, presumably because most people want to give themselves enough time to enjoy their decorations and get into the holiday spirit before they have to take them down again.

As one respondent put it: “The tree means the holidays are here. It’s been a tradition in my house to have the tree set up for Thanksgiving. It’s been that way ever since I was little. It signals the beginning of so many wonderful things.”

Methodology

To understand holiday decoration spending habits and preferences, specifically those surrounding Christmas or holiday trees, Rocket Homes surveyed 2,059 Americans who responded “yes” to the question “Do you currently own or plan to buy a Christmas/holiday tree?” The sample was controlled to include one-third millennials, one-third Gen Xers and one-third baby boomers, and to ensure that no gender was overrepresented. The survey was conducted in October 2021.  

To find out how year-over-year spending had changed, this year’s survey results were compared to a survey conducted by Rocket Homes in 2020 regarding holiday spending habits. To compare the two surveys, only the 1,060 respondents who reported that they decorate with a tree during the holidays were used. This survey was conducted in October 2020.