Report: Home improvement spending bounces back
The home and garden industry just had its best quarter since Q3 2022.
Consumer Edge (CE) has released its Q4 2024 Home and Garden Digest report.
According to the findings, the U.S. home and garden industry had its strongest quarter since Q3 2022, driven by a resurgence in the home improvement, rent-to-own, mattress and bedding and décor sectors. While the broader economy remains stymied by affordability concerns, rising home prices for both existing and new homes have bolstered homeowner confidence, leading to improved trends for renovations, furnishings and other home-related investments.
Consumer Edge's data shows that after two years of declines, home improvement spending is up again.
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Other key fidings from the report include:
- DIY home improvement rebounds. DIY home improvement spending also increased 1 percent in Q4 2024, reversing two years of declines, as post-pandemic spending continues to normalize.
- Stores in South benefit from macro tailwinds. The southern region of the U.S. outperformed other regions in the country in DIY home improvement spending, posting 3 percent growth during the quarter. Key retailers, including Lowe's, Tractor Supply and Floor & Decor, benefited from their strong presence in this region, where over 50 percent of sales originate.
- Home furnishings show signs of life. The rent-to-own sector experienced 6 percent growth during the quarter, driven by Upbound Group's Acima (formerly known as Rent-A-Center), as more consumers chose flexible financing options due to budget constraints. The mattress and bedding category grew 4 percent in Q4, reflecting increased consumer focus on sleep quality and wellness. Additionally, major retailers Mattress Firm and Sleep Number expanded their premium product lines, while direct-to-consumer brands Helix Sleep and Cozy Earth saw strong sales in their personalized and sustainable sleep products.
- Challenges persist in flooring and diversified retailers. Flooring and rug companies experienced a 10 percent drop in sales during the quarter amid a difficult macroeconomic environment. Wayfair and Crate & Barrel's CB2 also faced challenges, contributing to the weaknesses among diversified home furnishings retailers. Smaller brands, including Grandin Road and Sharper Image, also struggled.
Consumer Edge's full Home and Garden Digest can be read here.
