Homeowners’ Spending Shifts to Repairs and Upkeep

Homeowners are expected to continue pulling back on buying big-ticket items, such as furniture and mattresses, focusing instead on repairs and maintenance. That’s the major conclusion contained in the Home & Garden Outlook 2026 by Consumer Edge (CE), a provider of data-driven shopper insights.

U.S. transaction data compiled by CE revealed that elevated interest rates, limited housing turnover and ongoing affordability concerns were key drivers weighing on overall home and garden spending last year, ultimately pushing many households to postpone major home investments.

“What we’re seeing isn’t a collapse in home spending, but a reset of priorities,” said CE VP, Research and Market Intelligence, Michael Gunther. “Consumers are pushing pause on large, discretionary purchases while continuing to invest in repairs and upkeep. That dynamic is also evident in home furnishings, with consumers delaying big-ticket purchases like furniture and mattresses while continuing to spend on lower-commitment upgrades, such as small décor and kitchen product purchases.”

The report also delved into how the overall economic environment is impacting three different sectors of the home-improvement market:

* Retailers tied to everyday repairs and maintenance continue to perform better than the broader category. Such businesses include Ace Hardware, Sherwin-Williams, Menards and Rural King.

* When it comes to home furnishings, inflation remain a factor across the category, with average transaction sizes increasing across most leading brands. That’s been the case with such companies such as Pottery Barn, West Elm, Crate & Barrel (and CB2) and Ashley Furniture.

* Millennial homeowners look to be an important source of future growth, with consumers between 25 and 44 years of age increasing their share of home-improvement spending in 2025. Among the retailers benefiting that trend are Home Depot and Lowe’s.

CE’s Gunther says those trends mean retailers that focus on everyday needs, durability and real value are more likely to benefit from customer demand, while big-ticket home purchases are likely to remain under pressure until housing and financing conditions improve.

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