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Home Depot and Lowe’s see discretionary remodeling demand stay weak

Executives expect the slowdown to last through late 2026 as affordability and high interest rates curb big-ticket projects.

Reported · Written up by our desk · Residential

Home Depot and Lowe’s said discretionary remodeling remains under pressure even as essential repair and maintenance work holds up, according to HousingWire.

The companies attributed the gap to economic uncertainty and affordability constraints, with high interest rates weighing on larger, more discretionary renovations.

Executives also pointed to factors including inflation, tariffs, and elevated fuel and energy prices as headwinds, and they said demand is likely to languish at current levels through the end of 2026.

Housing LIRA research cited by HousingWire projects remodeling growth slows to 0.5% by Q2 2027, while company comments during recent earnings calls highlighted steadier activity in lower-ticket repair-and-replacement work alongside weaker demand for larger discretionary projects.

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