U.S. Consumers Shift Spending to Decor and Essentials as Big-Ticket Home Purchases Stall

Consumer Edge's report shows consumers are delaying big home purchases like furniture while maintaining spending on décor, kitchen products and repairs.

Published on Mar. 1, 2026

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According to Consumer Edge's 2026 Home & Garden Outlook, U.S. consumers have pulled back on large, discretionary home purchases such as furniture and mattresses, but have maintained spending on decor, kitchen products, and essential home maintenance. Elevated interest rates, limited housing turnover, and ongoing affordability concerns were key drivers behind the shift in consumer priorities. While big-ticket purchases stalled, smaller home upgrades and repairs held up better, benefiting retailers like Ace Hardware, Sherwin-Williams, Menards, and Rural King. Millennial homeowners also increased their share of home improvement spending, supporting longer-term demand for brands like Lowe's, Home Depot, and Sherwin-Williams.

Why it matters

This shift in consumer spending patterns reflects broader economic conditions and housing market trends, with households delaying major home investments due to affordability challenges. However, the continued investment in home decor, essential maintenance, and smaller upgrades suggests consumers are still focused on improving their living spaces, even if they are pulling back on larger purchases. This dynamic has implications for retailers and brands across the home goods and home improvement sectors.

The details

Consumer Edge'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. While big-ticket home purchases like furniture and mattresses stalled, smaller upgrades and home maintenance activities held up better, benefiting retailers like Ace Hardware, Sherwin-Williams, Menards, and Rural King. Pricing also 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. However, 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.

  • Consumer Edge released its 2026 Home & Garden Outlook in February 2026.

The players

Consumer Edge

A data insights company that released the 2026 Home & Garden Outlook report.

Michael Gunther

The vice president of research and market intelligence at Consumer Edge.

Bill Pecoriello

The CEO of Consumer Edge, which was founded in 2009.

Lowe's

A home improvement retailer that is seeing longer-term demand from Millennial homeowners.

Home Depot

A home improvement retailer that is seeing longer-term demand from Millennial homeowners.

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What they’re saying

“What we're seeing isn't a collapse in home spending, but a reset of priorities. Consumers are pushing pause on large, discretionary purchases while continuing to invest in repairs and upkeep.”

— Michael Gunther, Vice President, Research and Market Intelligence, Consumer Edge

“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.”

— Michael Gunther, Vice President, Research and Market Intelligence, Consumer Edge

What’s next

Consumer Edge plans to release further analysis and insights from its full 2026 Home & Garden Outlook report.

The takeaway

This shift in consumer spending patterns reflects broader economic conditions and housing market trends, with households delaying major home investments due to affordability challenges. However, the continued investment in home decor, essential maintenance, and smaller upgrades suggests consumers are still focused on improving their living spaces, even if they are pulling back on larger purchases.