By Kerrie Kennedy

Contributing writer

With housing market in a slump, food and gas prices sky high and talk of a recession looming, it’s no wonder that Americans are beginning to cut back on unnecessary spending. According to a recent survey conducted by RBC Capitol Markets, 54 percent of Americans say they will eat out at restaurants less over the next three months and two in five say they are already dining out less frequently today than six months ago.

Dining out isn’t the only unnecessary extravagance Americans are cutting back on—many are holding off on buying new homes, beginning extensive home renovation projects or buying expensive new furnishings.

Luckily, thanks to low-cost retailers such as Ikea and Costco—and a marketplace filled with inexpensive Chinese furniture—consumers no longer need to spend a king’s ransom for attractive, decent-quality furniture. At a time when filling your gas tank means forgoing a dinner at a restaurant, it’s nice to know that decorating your home is cheaper than ever. Here’s where to shop:

—Baker Odds & Ends. If you love Barbara Barry, you’ll definitely want to check out this store, where pieces are 50-65 percent off retail. The good news is, you may not need to drive all the way to Kohler (Wisconsin) to do it. If you know which piece you’re looking for, simply pick up the phone (920-458-2033) and see if they have it in stock. If not, they’ll email you when it’s available.

—The Brown Elephant. There’s no shame in shopping resale—just check out all the designer/collector types hunting for diamonds in the rough on any given day of the week here. Like them, you’ll need to be able to look beyond worn fabrics and scratched finishes and imagine what a little reupholstering/refinishing will do. The best part of shopping here? Whatever you buy helps raise money for Howard Brown Health Center.

—Costco. Costco is a surprisingly great place to shop for furniture bargains, both in the store and on the website at costco.com. While the quality tends to be high, design is another issue. Ranging from grotesquely overdone (too many Old World flourishes) to grotesquely suburban (bulky sofas with recliners), there’s a lot you’ll want to pass on. Still, you’ll find plenty of standouts, including classic leather Parson’s chairs for around $100 and well-priced leather ottomans. And if you’re in need of a new mattress, look no further. You can’t beat the prices or the quality.

—Crate & Barrel Outlet store. You’ve probably been to the CB2 on North Avenue, where you can stock up on things like wine glasses, dishes and serving platters, all on the cheap. But next time you find yourself in Naperville (maybe visiting those pathetic suburban friends of yours) stop by the Crate & Barrel outlet, where you’ll find tons of discontinued furniture pieces. For directions, call (630) 357-1155.

—Home Depot. If you’re in need of new light fixtures and want to save money, nix the lighting store and head over to your local Home Depot store instead. It happens to be one of the best places in town to pick up nice-looking but inexpensive chandeliers, light fixtures and ceiling fans.

—Home Goods. Whether you’re in need of lamps, bedding, bathroom accessories, pictures, baskets, candlesticks or decorative knick-knacks, you’ll find everything you need and more at this T. J. Maxx-owned store located in Morton Grove (7230 Dempster). Among the best deals here are the rugs: A huge 8 x 10 sisal rug (canvas band, latex backing), for example, is a mere $249.

—Ikea. A haven for students, 20-somethings, first-time homeowners and everybody else. If you’re remodeling your kitchen, you’ll want to come here—the deals are incredible. Don’t forget to cap off your shopping with a meal at the Ikea restaurant, where you can feed an entire family of four for around $20.

—Jan’s Antiques. Located at 225 N. Racine St., Jan’s Antiques is the place to go when you’re in the mood for a real treasure hunt. From furniture to lighting, bathroom fixtures to fireplace mantles and old hardware to old doors, you’ll probably find something here, even if it’s not what you’re looking for. Be sure to argue a little about the price—that’s half the fun!

—Macy’s Outlet. Located at 4000 W. Diversey, this used to be where Marshall Fields brought its discontinued and slightly damaged furniture and sold it for much, much less. Unfortunately, things have changed since Macy’s took over. Most of the inventory here is purchased specifically for the outlet store, which has not surprisingly removed much of the joy of shopping here. Still, prices are less than you’d find at the department store, so it may be worth a look-see.

—Quinlan’s. Drive all those Brown Elephant/auction finds right over to Quinlan’s for a beauty overhaul. Located on the corner of Webster & Elston, Quinlan’s is one of the few places in the city that specializes in the dying art of furniture re-upholstery. Bring your own fabric or buy it here.

—Restoration Hardware Outlet. Have your eye on something at Restoration Hardware? Wait a few months and then check the outlet store. You’ll find everything here from discontinued furniture pieces to rugs, lighting, and decorative accessories, all priced from 20 to 50 percent below retail. While it’s a bit of a drive—the outlet is located in Pleasant Prairie, Wisc., just across the Illinois border—it’s worth the effort if you’re a Restoration Hardware fan. For directions, call (262) 857-9836.

—Salvage One. Located at 1840 W. Hubbard, this 100,000-square foot space features 18th-20th century architectural furnishings (everything from radiators to mailboxes; fountains to millwork). Be sure to allow enough time to browse—just walking through the massive store takes a good hour.

—Target. You’ve probably noticed that the furniture section of your local Target store has been growing substantially, but what you may not know is that it’s nothing compared to what you can find online. The best part: Almost all of the pieces carry customer ratings and reviews, so you can make an informed decision before buying. Highly rated pieces include an upholstered tufted queen headboard for $175 and much of the French-inspired Shabby Chic collection.

—West Elm. Owned by Pottery Barn, but nothing like it. Sleek, contemporary furniture—think sophisticated Ikea. The prices are very reasonable ($529 for a low sofa; $139 for a block coffee table) but if contemporary isn’t your thing, you’ll have to look elsewhere. Chicagoans have to shop via catalog or online at westelm.com.

—Wholesale Interiors. Located one block west of O’Hare, Wholesale Interiors features sofas, sectionals, stools, ottomans and theater seating at hard-to-beat prices. They also carry a great line of Bauhaus replicas, like Le Corbusier, Barcelona and Eames. Delivery is available for $75. For more information, visit www.bluetagfurniture.com.