When moving into a new house, does the household keep the furniture and decorations?

Usually you get the popup option asking if you want to sell furniture or keep it.

Does that include decorations too? sorry.

It includes everything in the house. If you want to keep decorations e.g. paintings, you have to put them into the family's houshold inventory.

If you select "keep the furniture" when moving it sucks just about everything out of the house including toilets, kitchen cabinets, all the lights, etc, leaving the old house gutted and your household inventory bloated. I'd say it's best to selectively place the items you want to save in your inventory before moving. May be more of a rant than actually help, but hope it helps anyways.

I agree with the above poster. When moving, I usually take what furniture I consider important for the household with them and leave the rest behind. You don't take your counter tops/showers when you move! And I usually download full furnished homes from the Gallery so it's easier to just sell the rest and leave what I don't want with me behind.