Home Spending Shifts from Big-Ticket Purchases to Repairs in 2025
Event summary
- Consumer Edge reports a slowdown in big-ticket home purchases in 2025, with consumers shifting spending toward repairs and smaller décor items.
- Elevated interest rates, limited housing turnover, and affordability concerns drove the shift in consumer priorities.
- Home furnishings prices continued to rise even as demand slowed, with brands like Pottery Barn and Ashley Furniture seeing higher average transaction sizes.
- Millennial homeowners (25-44 years old) increased their share of home improvement spending, benefiting retailers like Lowe's and Home Depot.
The big picture
Consumer Edge's data highlights a broader reallocation of discretionary spending away from large home investments toward essential maintenance and smaller upgrades. This shift reflects ongoing economic pressures, including higher interest rates and affordability concerns, which are likely to keep big-ticket purchases under pressure until market conditions improve. Retailers that can cater to everyday needs and offer real value are positioned to benefit from this evolving consumer behavior.
What we're watching
- Economic Conditions
- How elevated interest rates and housing market conditions will affect big-ticket home purchases in 2026.
- Consumer Priorities
- Whether the shift toward repairs and smaller upgrades will persist beyond 2026.
- Retailer Strategy
- The pace at which retailers adapt to changing consumer priorities by focusing on everyday needs and value.