Study: Consumers delay big-ticket home purchases; investing in repairs, upkeep
Consumers shifted spending from big-ticket home purchases to smaller-ticket items and repairs in 2025 in a trend that is expected to continue in 2026.
Higher interest rates, limited housing turnover and ongoing affordability pressures weighed on overall home and garden spending in 2025, according to Consumer Edge’s “Home and Garden Outlook 2026.” While consumers delayed spending on large, discretionary purchases such as furniture and mattresses, spending held up better on décor, kitchen products and essential home maintenance — a divide that continues to shape the market in 2026, the report found.
Across the home furnishings category, pricing pressure persisted throughout 2025, even as demand softened. Inflation remained a factor across the category, as average transaction sizes increased across a majority of leading brands, with companies such as Pottery Barn, West Elm, Crate & Barrel (and CB2) and Ashley Furniture seeing higher average ticket sizes even as demand slowed.
The report revealed that spending slowed across income groups late in 2025, with the sharpest declines among households earning under $40,000 and those earning over $150,000, signaling a broader reallocation of discretionary spending away from home-related categories.
Other insights from the Consumer Edge report are below.
•Home improvement spending stabilized around repairs and maintenance. While overall home improvement spending softened for a third consecutive year, demand remained higher than it was before the pandemic. Retailers tied to everyday repairs and maintenance continued to perform better than the broader category, including Ace Hardware, Sherwin-Williams, Menards and Rural King.
•Millennial homeowners stood out as an important source of future growth . Consumers between 25 and 44 years of age increased their share of home improvement spending in 2025, with brands such as Lowe's, Home Depot, Ace Hardware and Sherwin-Williams gaining traction through loyalty programs, digital tools and project support resources.
"What we're seeing isn't a collapse in home spending, but a reset of priorities," said Michael Gunther, VP, research and market intelligence, at Consumer Edge. "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."
“In 2026, 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, Gunther said.
Consumer Edge is a leading data and insights-as-a-service (IaaS) company specializing in the global consumer, B2B, and healthcare economies.