When my wife and I bought our new house, we wanted to fence in the backyard, but with all of the other things we absolutely had to do, like walling off an office for me and creating a safety barrier for the cat on the stairs, a fence was a luxury, not a need.
We planned to have one built, but since it required a survey, a permit, and for the work to be done by a licensed contractor (or at least under the auspices of one), a fence became a one day, not a today project.
Many Americans are taking the same approach.
“Larger discretionary projects remain under pressure,” Home Depot Executive Vice President of Merchandising Billy Bastek said during the chain’s second-quarter earnings call.
Homeowners are cutting back
Basically, builders are still building, and people are doing the work that needs to be done, but many Americans are sticking to needs and pushing off wants.
“Strong performance in Pro, Online, and Home Services helped to offset persistent macro pressures, softer DIY discretionary spend, and the challenging weather during Memorial Day weekend,” Lowe’s CEO Marvin Ellison said during his company’s second-quarter earnings call.
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He explained how consumers have been acting on a broad basis.
“Elevated fuel prices combined with broader economic uncertainty have influenced household budgets. Customers continue to tell us that they are being cautious about their spending and prioritizing where and when they invest in their homes. As a result, discretionary DIY demand remains under pressure,” he added.
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Homeowners are putting off projects
What Lowe’s and Home Depot have seen in their stores matches what consumers are saying.
Seventy-one percent of homeowners put off at least one home project, according to a 2025 Pulse Report from Angi, updated in July 2026.
These are the reasons homeowners put off discretionary projects:
- 92% cite inflation.
- 89% cite economic uncertainty.
- 65% cite high interest rates.
- 64% are concerned about income or job stability.
“The most commonly postponed projects include bathroom remodels (12%), interior painting (10%), and window replacements (10%). Notably, 58% said they delayed projects due to high materials or labor costs,” Angi reported.
It’s not only optional work being postponed. Many homeowners are putting off critical repairs for financial reasons, according to a survey from Consumer Affairs.
“In total, 92% of homeowners had outstanding repairs on their to-do list. Nearly a quarter (23%) said they were currently waiting to fix a serious issue, while about two-thirds (64%) said their problems were minor. On average, homeowners waited over 10 months to make a critical repair,” the data showed.
Lowe’s targets premium customers
While many Americans struggled due to the state of the economy, Lowe’s has made a concerted effort to capture higher-end customers.
“Looking ahead, while discretionary DIY spending remains under pressure and the K-shaped economy continues to shape consumer spending, we’re encouraged by the plans that we have in place to drive demand for both our price-conscious and premium customers in the second half of the year,” Lowe’s Executive Vice President of Merchandising William Boltz said during the earnings call.
He explained what those efforts look like.
“For example, we’re expanding our assortment of premium appliances on Lowes.com, giving customers more choices across a wider range of price points and allowing us to unlock additional sales in our largest category,” he said.
The company is trying to match what customers want to its inventory.
“We’re bringing that same approach to patio by expanding our assortment of premium outdoor furniture, both online and in our year-round markets. Together, these expanded assortments position us well to capture more demand from more customers by offering luxury design and innovation to serve customers across a broad range of price points,” Boltz shared.
Home Depot has also been focused on its inventory and making sure customers want to shop in its stores.
“Our teams are focused on ensuring on-shelf availability remains at record levels on introducing new and innovative products and deploying technology across the stores to enhance the customer experience,” Home Depot Executive Vice President Ann-Marie Campbell said.
Home Depot has also made online and in-store improvements to make it easier for customers to find the items they’re looking for.
“A great example of how we are building on the momentum that we are seeing is through evolution of Magic Apron. In addition to our website, now associates and customers can utilize this application in our aisles to navigate our stores more efficiently, find products within seconds and ask questions about products and projects to feel more confident in their ability to complete a home improvement project,” Campbell added.
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