Home Depot says homeowners are holding back over concerns about 'housing affordability and job losses'
Business Insider
February 24, 2026
AI-Generated Deep Dive Summary
Home Depot CEO Ted Decker has revealed that customer hesitation due to economic concerns is the primary reason for delayed investments in home improvement projects. The company, which reported nearly flat comparable sales growth for both the quarter and fiscal year, attributes this stagnation to rising worries over housing affordability and job losses. Homeowners are increasingly reluctant to commit to costly renovations or new home purchases amid uncertain economic conditions, reflecting broader trends across the home improvement retail sector.
The challenges stem from a combination of high borrowing costs, elevated housing prices, and widespread layoffs, which have dampened enthusiasm for major projects. Even financially stable households are expressing heightened concerns about their financial security. This cautious approach is further compounded by low mortgage rates failing to stimulate activity, leaving many homeowners locked in place. Home Depot’s CFO Richard McPhail noted that these issues are particularly affecting middle- and higher-income households, who typically drive demand for home improvements.
Looking ahead, Home Depot is adopting a measured stance as spring—a traditionally busy season driven by warmer weather and tax refunds—approaches. The company is not banking on significant sales boosts from tax stimulus, with customers likely to prioritize debt repayment or savings over spending. This cautious outlook reflects the broader uncertainty in the housing market, with Decker expressing optimism that the sector may be stabilizing after a prolonged period of decline.
The situation underscores the critical role of consumer confidence in shaping market trends. While Home Depot and rival Lowe’s have demonstrated disciplined management through this challenging phase, both companies are navigating an environment where economic concerns remain paramount. The housing market’s resilience, as Decker described it, is tied to broader economic stability, with any improvements likely to unfold gradually rather than abruptly.
For businesses and investors, the implications highlight the importance of aligning strategies with shifting consumer sentiment. As economic uncertainties persist, companies in the home improvement sector must remain agile, adapting to changing market dynamics while maintaining financial discipline. The ongoing challenges also serve as a reminder that housing affordability and job security are key factors influencing not only individual purchasing decisions but broader economic recovery efforts.
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Originally published on Business Insider on 2/24/2026