How to Budget for Furniture and Decorating Costs for a New Home

Interior decorating is one of the most enjoyable phases of any home-building project. Because there are so many variables, estimating the cost of furnishings and establishing a realistic budget can be tricky. When I moved into my “forever” home after years of living in apartments, I was surprised by how much it cost to decorate my newly expanded living space.

“Furnishing and decorating your home from scratch is like car shopping,” says Eco Method Interiors lead designer Erica Reiner. “There are tons of differences in quality and prices.” Whether furnishing a full-time home or a second home or cabin, learn to budget with three industry pros: Reiner, personal finance expert Andrea Woroch and Kristin Patrician from Dwelling Envy Interiors.

About the Experts

Erica Reiner is the lead designer at Eco Method Interiors, an eco-friendly interior design company in Los Angeles, California. She was the Interior Design Society’s 2023 Designer of the Year.

Andrea Woroch is a consumer and budgeting expert offering personal finance advice to families. She’s been featured in many national publications, including Better Homes and Gardens, Redbook and Cosmopolitan.

Kristin Patrician is owner and principal designer at Dwelling Envy Interiors a virtual interior design company started in 2018. She completed the Interior Design Certificate Program at Parsons School of Design in New York City.

Furnishing a Primary Home vs. a Second Home or Cabin

The key differences between furnishing a full-time home and a vacation home involve style, quality, durability and seasonality.

Size and Style

The size of the home significantly influences how much it will cost to furnish.

According to Woroch, your furnishing budget can be as low as 10 percent or as high as 50 percent of the home’s cost, depending upon your finances. So for a $300,000 home, furnishings can fall between $30,000 and $150,000. “You can keep your budget toward the mid- to lower end of that range with a few money-saving hacks,” Woroch says.

The style of the house will also influence your furniture budget. A rustic cabin or shabby chic beach house will cost less to furnish than an ultra-contemporary primary home.

Quality and Durability

When choosing furnishings for their primary residence, most people opt for quality over quantity because they anticipate lots of wear and tear. For a second home, that choice will probably depend on how often you stay there and if you plan on renting the home to vacationers when you’re not.

If the second home will be used sparingly without renting, you can opt for more budget-friendly furnishings. Choosing more durable pieces might make more sense if you plan to rent it.

“Often clients rent out their second home or know that there will be lots of guests visiting, so they want the added peace of mind of durability,” Patrician says.

Seasonality

Your full-time home needs to be comfortable and welcoming year-round, but many vacation homes and cabins are only used for one season a year. Beach houses will not need the same furnishings as a cabin used during winter months for skiing.

Seasonal use can also mean that temperatures inside your vacation home fluctuate dramatically, potentially damaging some types of furnishings, like wood furniture. “I tend to find other materials such as upholstered ottomans, stone top tables or engineered wood,” Patrician says.

Décor Budgeting for First and Second Homes

After setting a spending cap and considering usage, you must create a line-item budget. Break down your budget by room, considering large items (couches, beds) and small items (table lamps, decor).

“The best thing to do is make a spreadsheet,” Reiner says. “Organize by room and put everything you need on this list, including accessories. Then decide where to splurge and where to budget.” This tip is how I finally found focus when decorating my home.

Basics Categories in a Furniture and Decorating Budget

The main furniture and decorating categories are the same for a primary or vacation home:

• Furniture: These are the biggest ticket items and also where you have the most leeway for splurging or saving, especially for your vacation home. I splurged on an expensive couch for my living room, but got my dining room sideboard free on Craigslist.

• Rugs: Plan to spend more for high-traffic areas where durability is a priority.

• Lighting: Prices in this category vary greatly, from statement floor lamps to vintage table lamps, making careful selection essential.

• Wall décor: Any fine art will likely be displayed in your primary residence. Themed pieces can keep a second home decorating budget on track.

• Window treatments: While your primary home windows may warrant quality custom window treatments, you can easily get by with more budget-friendly options for a second home.

• Styling accessories: This catch-all category (pillows, throws and decorative accents) are the pieces that add flair to your interiors, but these smaller expenditures can add up fast.

Tips for Staying on Your Furniture and Decorating Budget

Here are some ways to create interiors you love without breaking the bank:

• Opt for second-hand items. “Scope out deals at second-hand sites and marketplaces like Facebook Marketplace, OfferUp or Chairish,” Woroch says.
• Upcycle items from your full-time home to your cabin or vacation home.
• Use coupons. “Sign up for a store’s email newsletter to get an exclusive first-time discount code,” Woroch says. “Or go to a coupon aggregator like CouponFollow.com where you can find deals.”
• Bargain shop. Woroch suggests checking local discount retailers like TJMaxx or Home Goods.

FAQs

Is expensive furniture worth it?

It depends. Invest in key furniture items like beds, chairs and sofas, while opting for secondhand or discounted options for items like TVs, coffee tables or benches.

Where should I start decorating a new home?

Begin with a defined design vision and style for your home, then let it guide all your furniture and decor purchases.