The value of immovable property diminished during the credit crunch. The value of household effects and cars also diminished, albeit less dramatically. Total value of these so-called durable household consumer goods amounted to 177 billion euros in 2008 versus 167 billion euros in 2014. Prior to the recession, the value of household effects and cars had in fact increased, as Statistics Netherlands (CBS) reports.
Value durable consumer goods owned by Dutch households
The value durable consumer goods, defined as goods households use on a regular basis for a period of at least twelve months, is the balance of all goods purchased in a particular period minus the depreciation. Depreciation depends on functional and economic obsolescence, similar to the depreciation on investments. During the credit crunch, sales of durable consumer goods plummeted, while the process of depreciation continued. In the period 2009-2011, purchase behaviour and depreciation occurred at the same rate, but subsequently purchases fell below the level of depreciation. Total consumption in euros still grew in the period 2008-2014, but the share of durable consumer goods declined from 20 to 17 percent over the same period.
Balance purchase and loss of value consumer goods
Vehicles and home furnishings constitute smaller part of total assets
In recent years, Dutch households cut spending on all durable consumer goods, but most on cars and other vehicles and home furnishings. As a result, the value of total assets declined marginally. The share of vehicles fell from 26 percent in 2008 to 25 percent in 2014 and the share of home furnishings from 24 to 22 percent. The decline is partly caused by the downturn on the housing market.
The share of household appliances rose from 16 to 17 percent during the period 2008-2014. The rise is due to the introduction of new electrical devices like smart phones and tablet computers. Despite the recession, these devices are in high demand.
Balance purchase and loss of value consumer goods
