Editor's Note
This editor’s note highlights the key facts and market implications behind “Home Improvement Market Insights”, with emphasis on sourcing, product fit, fabrication, logistics, or buyer impact.
What sort of year are folks in the building supply business in for? According to the Home Improvement Research Institute (HIRI), 2026 is trending pretty comparably with 2025's overall industry performance, with some big caveats, of course.
HIRI recently compiled data regarding home improvement trends and forces that are shaping the market so far this year—along with analysis following where the industry's heading. Below are some key takeaways from the data.
Growth, but through inflation
Pricing pressures are starting to really bite across the board, which carries a host of broader implications. With inflation showing no signs of slowing for 2026, HIRI shares categories that "increased by nominal and real-growth terms" in 2025:
Soft-surface floor coverings Lawn and garden supplies Tools Paint Nursery supplies Other building materials
Meanwhile, in 2025, HIRI says many categories "experienced inflationary growth," meaning items were more expensive rather than selling like hotcakes.
In 2026, HIRI believes most categories will see growth "only through inflation." Exceptions include:
Gypsum and specialty boards Dimensional lumber and boards Plywood and related products
“The challenge for industry stakeholders will be determining how to continue being competitive and growing as costs are going up,” HIRI writes.
Mobility (or lack thereof) hampers housing activity
A recent National Association of Realtors’ survey found that 73% of homeowners are saying it’s a bad time to buy a house. Meanwhile, first-time buyer activity is at historic lows.
As a result of the sour sentiment, HIRI says the market is centering more toward repair and renovation efforts in lieu of relocation. This dearth of houses being bought and sold, coupled with a broader homebuilding lag, is poised to have a major impact on how home improvement dollars are allocated throughout 2026.
“The question that manufacturers and retailers should ask themselves is, how reliant is my product category on new home buyers entering the market?”
HIRI calls for strategies prioritizing "stay-driven" homeowners, rather than focusing on "move-driven" customers.
Disposable income grows, but sentiment remains muted
Consumer Confidence has gotten off to a rocky start in 2026, but the data shows a rise in disposable income for U.S. consumers. And HIRI believes that's the real metric to watch.
“Consumer sentiment has a shorter-term impact, whereas disposable income is a better gauge for home improvement spend. If people are making more, they’re likely to spend more.”
HIRI offers a projection for real disposable income growth in coming years:
+3.2% in 2026 +2.7% in 2028 +2.6% in 2029 +2.5% in 2030
“With consumer purchasing power actually improving, it is imperative for building products manufacturers and retailers to tether their growth perceptions and expectations to durable income strength, not fleeting confidence,” HIRI writes.
Homeowner demographics are changing
HIRI finds that right now, Gen X homeowners are "occupying the center mass of home improvement spending." Millennials are increasing their share of building product spend, however, while older cohorts have reduced activity.
Over the past 10 years, HIRI says Boomers’ share of remodeling spend has dwindled, as Millennials increasingly enter homeownership.
The latest home improvement spending data by generation:
Silent Generation: 6% of spend Boomers: 38% of spend Gen X: 34% of spend Millennials: 22% of spend Gen Z: 1% of spend
That generational shift calls for exploration and attention to ensure marketing and business strategies align with customers' preferences.
Source: Read the original article | Published: April 08, 2026