Higher-end appliances typically sell when consumers are remodeling, relocating or building new homes. Those activities have slowed significantly since the pandemic boom, pressured by elevated home prices, higher borrowing costs and subdued consumer confidence, The Wall Street Journal reported Monday.
The slowdown extends well beyond appliances. Manufacturers of insulation, flooring, siding, cabinets, roofing and other building materials have reported declining demand, according to industry data. Many companies say homeowners are postponing renovations or choosing smaller-scale repairs instead of full upgrades.
For appliance maker Whirlpool (WHR), there is a silver lining in today’s soft housing market: when a refrigerator or washing machine stops working, most households eventually replace it. The challenge is that these purchases tend to be practical rather than premium.
As a result, Whirlpool’s (WHR) more profitable product lines, which can account for up to 60% of unit sales in stronger markets, now represent less than 40% of volume.
Carrier Global (CARR), which produces heating and air-conditioning systems, said its net sales slipped 3% last year, in part because customers opted to repair existing equipment rather than replace it. Chief Executive David Gitlin told analysts that homeowners planning to sell are often hesitant to invest in major upgrades shortly before listing a property, preferring to patch things up and “get by” until a move.
Executives across the home-improvement and building-products landscape describe similar dynamics, but also point to potential green shoots.
Sherwin-Williams (SHW) CEO Heidi Petz said that when housing activity eventually picks up, suppliers will want to be positioned to benefit, though the market first needs renewed momentum. 3M (MMM) CEO Bill Brown noted that sluggish home sales are discouraging consumers from tackling large projects such as roof replacements.
Jeff Jackson, CEO of Cabinetworks, said interest from customers is improving, but orders have yet to follow in meaningful numbers.
Flooring manufacturer Mohawk Industries (MHK) highlighted the powerful impact of home turnover on spending. CEO Jeffrey Lorberbaum said buyers typically spend multiples more on remodeling flooring in the first year after purchasing a home than homeowners who stay put. Similarly, Williams-Sonoma (WSM) CEO Laura Alber said she is optimistic about 2026, noting that moves tend to trigger a wave of furnishing purchases.
At Whirlpool, CEO Marc Bitzer said a shift in consumer sentiment could lift discretionary purchases even before housing volumes fully rebound. Lennox International (LII) CFO Michael Quenzer added that existing-home sales appear to be stabilizing, which could provide incremental support.
Keith Hughes, an analyst at Truist Securities who covers building products and durable goods, said the remodeling downturn has been prolonged, rivaling the slump that followed the 2008-09 financial crisis. Even routine maintenance has been deferred, he said. Still, with the U.S. housing stock aging, he expects pent-up demand to eventually release. Once activity begins to recover, he said, the rebound could be significant, though it will require a catalyst to get started.
Some industry observers believe subtle consumer trends may hint at improving confidence. Meganne Wecker, CEO of Skyline Furniture Manufacturing, said retailers are beginning to request brighter fabrics and more distinctive designs after years dominated by neutral tones. In her experience, demand for bolder décor often signals a more upbeat outlook among buyers.
As housing turnover remains subdued, manufacturers are navigating a challenging stretch. But many are positioning themselves for what they believe could be a meaningful recovery once affordability pressures ease and consumer confidence returns, the Journal reported.