Consumer Edge: Big-Ticket Home Purchases Stalled in 2025 as Spending Shifts to Repairs, Décor and Essentials
Consumer Edge on February 18 published its Home & Garden Outlook 2026 report, showing that U.S. household spending on large home purchases such as furniture and mattresses slowed in 2025 as consumers reallocated dollars toward repairs, upkeep and smaller décor and kitchen product purchases. Elevated interest rates, limited housing turnover and ongoing affordability pressures were cited as key factors weighing on major home and garden spending last year.
Transaction data from Consumer Edge revealed that both affluent and budget-conscious consumers pulled back on big-ticket home purchases late in 2025, with spending slowing across income groups. At the same time, demand for everyday home improvement and maintenance items remained above pre-pandemic levels, benefiting retailers tied to fix-and-maintain categories, including Ace Hardware, Sherwin-Williams, Menards and Rural King.
The report also noted that pricing in the home furnishings category stayed elevated despite softer demand, with average transaction sizes increasing among brands such as Pottery Barn, West Elm, Crate & Barrel and Ashley Furniture. Millennial homeowners aged 25 to 44 increased their share of home improvement spending in 2025, helping drive traction for retailers such as Lowe’s, Home Depot, Ace Hardware and Sherwin-Williams 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, vice president of research and market intelligence at Consumer Edge. “Consumers are pushing pause on large, discretionary purchases while continuing to invest in repairs and upkeep.” Gunther said this dynamic is likely to persist into 2026 until housing and financing conditions improve, with everyday needs, durability and value focal points for consumer demand.
