NEW YORK – Data insights company Consumer Edge has released its Home & Garden Outlook 2026, showing that consumers pulled back on large, discretionary purchases such as furniture and mattresses, while spending held up better on décor, kitchen products and essential home maintenance.
“What we’re seeing isn’t a collapse in home spending, but a reset of priorities,” said Michael Gunther, Consumer Edge vice president, research and market intelligence. “Consumers are pushing pause on large, discretionary purchases while continuing to invest in repairs and upkeep.”
The company’s transaction data 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.
Additional trends:
· Big-ticket home purchases stalled as consumers delayed furniture and mattress purchases, while smaller upgrades held up better.
· Repairs and maintenance outperformed broader home improvement, benefiting retailers like Ace Hardware, Sherwin-Williams, Menards and Rural King.
· Pricing remained elevated across home furnishings even as demand slowed, with higher average ticket sizes at Pottery Barn, West Elm, Crate & Barrel and Ashley Furniture.
· Spending slowed across income groups, with the sharpest pullback among households earning under $40K and over $150K.
· Millennial homeowners (aged 25–44) increased their share of home improvement spending, supporting longer-term demand for brands like Lowe’s, Home Depot and Sherwin-Williams.
“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,” Gunther said.
He believes 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. Consumer Edge’s full Home & Garden Outlook can be read here.
Founded in 2009 by CEO Bill Pecoriello, Consumer Edge delivers real-time, transaction-based data that helps clients eliminate uncertainty, benchmark performance and make high-impact decisions.
