Consumer Edge Reports Shift in Home Purchases Toward Smaller Spending in 2026

Consumer Edge Reports Changes in Home Spending Trends

In a newly released report from Consumer Edge, the global leader in consumer data insights, it has been revealed that spending on big-ticket home items has significantly declined in 2025. Instead, consumers are increasingly dedicating their funds to home repairs, maintenance, and smaller decor and kitchen products. This shift in purchasing behavior is likely to continue influencing the market throughout 2026.

Overview of the Market Dynamics

The Home & Garden Outlook 2026, published by Consumer Edge, illustrates that a combination of elevated interest rates, limited housing transactions, and affordability issues has constrained spending in the home and garden sector. Many households have opted to postpone large purchases that are not immediately necessary. This trend is evident across various income brackets, highlighting a universal shift in consumer priorities.

Key Insights from the Report

1. Decline in Big-Ticket Purchases:
Both affluent and budget-conscious shoppers are pulling back on spending. Households earning less than $40,000 and those with incomes over $150,000 have notably decreased their discretionary outlays, reflecting a widespread shift away from home-related investments.

2. Persistent Price Increases:
Despite the drop in demand, prices for home furnishings have continued to rise due to ongoing inflationary pressures. Brands like Pottery Barn, West Elm, and Ashley Furniture have seen their average transaction sizes increase, indicating that while fewer items are being bought, consumers are often spending more on each purchase due to higher prices.

3. Focus on Repairs and Maintenance:
There has been a stabilization in spending specifically targeted towards necessary repairs and maintenance. Businesses like Ace Hardware and Sherwin-Williams have experienced growth, outperforming the broader home improvement category even in times of reduced spending.

4. Emerging Millennial Consumer Influence:
Millennials, particularly those aged 25 to 44, have emerged as a critical demographic in the home improvement segment. Their increasing engagement with brands such as Lowe's and Home Depot, aided by loyalty initiatives and digital tools, signifies a positive trend for the future of home-related spending.

Future Outlook

Michael Gunther, Vice President of Research and Market Intelligence at Consumer Edge, noted that the current trend does not signify a crash in home spending but rather a recalibration of consumer priorities. "We’re seeing consumers delay significant purchases while maintaining a focus on essential upkeep and repairs," he explained. As we step into 2026, the brands that align with consumer needs for practicality and value are likely to thrive amidst these changing dynamics.

Overall, while high-ticket items may remain under pressure, a focus on cost-effective solutions and small upgrades presents new opportunities for retailers aiming to capture the evolving consumer mindset in home improvement and furnishings. Companies must adapt to these trends if they hope to reap the benefits in an increasingly cautious marketplace.

For more in-depth insights, the full report can be accessed directly from Consumer Edge’s website.