Despite broader consumer pullbacks due to economic uncertainty, U.S. homeowners are increasing spending on home renovations. Sales at building materials and garden supply stores showed a notable rise, alongside increases in repair and remodeling costs driven mainly by escalating labor expenses. Major retailers like Home Depot are managing price effects resulting from tariffs by diversifying their supply chains, although fewer homeowners are undertaking large projects owing to high interest rates. This trend reflects a stagnant housing market where elevated mortgage rates are hindering new purchases, compelling homeowners to invest in their current properties instead.
Sales at building materials and garden supply retailers rose 0.8% last month from March, the biggest gain since 2022, and were up 3.2% from April last year.
We haven't seen panic buying from contractors or investors concerned about the impact tariffs might have on future costs.
Spending on home renovations has remained resilient as elevated mortgage rates and skyrocketing home prices have frozen out many would-be buyers.
Home Depot said Tuesday that it doesn't expect to raise prices because of tariffs, saying it has spent years diversifying the sources for the goods on its shelves.
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