Survey: Consumers trimming holiday decoration spending
Holiday decor is on the chopping block for many Americans this year.
Amid increased prices and economic uncertainty, 28% of consumers are trimming their decorating budgets this year, while 26% are reining in gift spending, according to a new survey from Rocket Mortgage and Redfin. Just 16% of consumers are planning to spend more on holiday decor this year.
More than half (56%) of those who are spending less on decorations say it’s because they are trying to save money, while 44% cite economic uncertainty. Forty-two percent say they have enough decorations and don’t need more, while 19% aren’t hosting holiday celebrations, and 17% are feeling less festive than last year.
Most Americans are spending under $100 on decorations for this year’s holiday season. More than one-third (37%) are spending between $1 and $100, while another 36% are spending zero. Just over one-in-five (22%) consumers are spending more than $100, but less than $500.
“Even small cost-saving measures, like cutting back on buying new holiday decor, reflects a broader feeling of caution when it comes to the economy,” says Daryl Fairweather, chief economist at Redfin. “People are worried about earning less money while costs go up. Americans are keeping their wallets close not because they don’t want to celebrate, but because they’re being sensible. The fact that some people are cutting back during the holidays could be a sign that consumer spending will slow down in the new year.”
The most common reason Americans spend money on decorations is simply to celebrate and enjoy the holiday season, with almost half (48%) of survey respondents selecting that option. More than one-third (37%) cited making their home feel more festive for themselves, while 32% are spending money on decor to make their house “feel like a home.”
[READ MORE: Survey: Consumers would choose gift spending over holiday travel]
Seventeen percent of those surveyed are shelling out for decorations because the price is right or they are on sale, and 10% say they are excited to decorate a home they just moved into.
"As people navigate inflation and an uncertain economy, they're taking a closer look at where every dollar goes," says Daniel McGrath, general manager at Rocket Money. "Holiday decor often feels like an easy area to cut back, as many families likely already have what they need from past years. What we're hearing is a shift toward spending that feels more personal, including meaningful gifts, experiences with loved ones, and creating traditions that last beyond the season.”
Detroit-based Rocket Mortgage and Redfin commissioned Ipsos to conduct a survey on Oct. 23-24, 2025. The nationally representative survey was fielded to 1,005 U.S. residents.
