Home Depot Says Homeowners Are Weary From Economic Pressures

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by Kim Bhasin

February 24, 2026

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Home Depot reported a nearly 4% decline in sales during its latest quarter, driven by homeowners delaying large-scale home improvement projects amid growing economic pressures. The company’s chief financial officer highlighted a significant drop in demand for items related to buying and selling homes, reflecting broader concerns among consumers about housing costs, job security, and rising financing expenses. Homeowners are grappling with inflation, a fragile job market, and higher interest rates, leading them to prioritize essential spending over costly remodeling projects. According to Ted Decker, CEO of Home Depot, customer sentiment is at the core of this shift. He noted that consumers are currently not investing in major home improvement initiatives, as they feel uncertain about their financial futures. This cautious approach is also evident in the broader retail sector, where Americans are stretching their budgets and turning to discount retailers like Walmart. During the holiday season, shoppers focused on finding deals and increasingly opted for “buy now, pay later” options, signaling a shift toward more frugal spending patterns. The housing market remains sluggish, with turnover at historical lows due to a combination of factors: limited affordable housing, elevated home prices, and higher interest rates. These challenges have kept many potential buyers on the sidelines, while existing homeowners who secured low mortgage rates are hesitant to sell. This观望 attitude further dampens demand for home improvement products and services, as moving homes becomes less frequent. This decline in spending reflects broader economic concerns, with inflation continuing to weigh heavily on consumer confidence. Americans are focused on managing rising costs and preserving financial stability, which has led to a pullback in non-essential spending. The situation underscores the fragile state of the U.S. economy, where even minor economic uncertainties can have significant ripple effects across industries, including retail and housing. For Home Depot and similar home improvement retailers, this shift highlights the importance of adapting to changing consumer behaviors. As homeowners prioritize essential expenses and delay large projects, companies in this sector may need to focus on smaller-ticket items or alternative strategies to maintain sales growth. The broader implications of this trend suggest a challenging environment for economic recovery, with consumer confidence playing a critical role in driving spending and investment decisions.

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Originally published on NYT Homepage on 2/24/2026