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The impending time change and soon-to-come warmer temps often give way to spring and summer projects around the house. But the state of home improvement this year might not exactly be as rosy as the weather as evidenced by both of the major home improvement retailers, Lowe’s and Home Depot, recently sounding the alarm. With the latest tariffs now in effect amid an already dampened economic outlook overall, home improvement projects appear primed for a downturn this year. CivicScience has new data on what home improvement plans might look like in this uncertain and turbulent economic climate.
Home Renovation Intent Drops Significantly
New CivicScience data through the end of February highlight why retailers are feeling uneasy – a slim majority (51%) of consumers believe now is a ‘bad’ time to make a major purchase like home improvements given the state of the economy. This percentage has increased by three percentage points from January. While only 16% believe now is a ‘good’ time for such purchases, it represents the highest percentage holding this belief since September 2021.
As interest rates remain elevated and tariffs hit home, American homeowners are overall less likely to plan on taking on any renovation projects in the next 12 months than they were in 2024. This year, 55% of homeowners have renovation/remodeling projects planned, down from an average of 62% during 2024. This decline is likely to accelerate in the wake of this week’s tariffs. Among those who are undertaking a project, 22% will handle it all themselves, outpacing those relying fully on professionals (18%) and those using a mix of DIY and professional work (15%).
Use this Data: The press, brands, and marketers can use this chart to understand how consumer sentiment on the economy is likely to impact home improvement plans in the months ahead.
Among those planning home renovations this year, 74% expect to spend $10,000 or less, including 46% staying under $5,000. On the higher end, 13% plan to exceed $20,000, with 4% spending over $60,000. Nearly half (47%) of Home Depot’s customers plan to keep renovation budgets under $5,000 – six percentage points higher than Lowe’s customers, who are more likely to spend between $5,000-$10,000.
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Finding a Way Forward: Taking on Debt May Be Key to Projects
Taking on home improvement projects can quickly become a pricey venture, which may lead consumers to take on debt to make it happen. New CivicScience data among those planning projects in the next 12 months finds just under one in five (18%) reporting they plan to take on at least some debt to pay for them. Additionally, 37% of respondents taking on debt for imminent home improvements expect to spend $10,000+.
Twenty-one percent of Home Depot’s customers with home improvement project plans this year expect to take on debt to pay for them, outpacing Lowe’s customers by six percentage points (15%).
The Work They Will Be Doing This Year
Peering through the lens of Americans planning some variation of home improvement projects in the next 12 months reveals priorities that are likely to be comparatively lighter on the budget are most common. Data show landscaping, interior painting, and flooring/carpets are the top three most common projects likely to be in the cards this year. Meanwhile, more extensive work such as adding a pool, hot tub, or spa, an addition, or finishing a basement/attic are the least common among consumer home improvement plans.
Let us Know: Do home improvement shows on TV ever motivate you to do your own projects?
Economic pressures may be cooling the home improvement market, but not all consumers are abandoning their plans entirely. Instead, they appear to be they’re focusing on projects that require less extensive work and financial strain. Taking on debt is also likely to play a key role in keeping home improvement plans afloat. To navigate these headwinds, retailers, and brands would be wise to focus on the most common project categories and emphasize DIY and financing options to capitalize on higher-intent consumers.
