Home Depot, Lowe’s: remodeling idles as big projects lag

Remodeling demand is holding its own in lower-ticket home repair-and-maintenance work, but large discretionary renovations remain under pressure, as economic uncertainty, high interest rates and affordability constraints hold consumers back. Stalled momentum was a key takeaway from the latest earnings calls from The Home Depot and Lowe’s, both held last week.While executives at both companies remain bullish on the long-term prospects for remodeling and home improvement, they also said demand is likely to languish at current levels through the end of 2026. Third-party research similarly indicates that demand for the sector will remain cool for at least the next year. Essential repairs remain resilient, but big projects take a hit During a Q2 2027 earnings call on August 18, The Home Depot CFO Richard McPhail said that the company “saw broad-based demand across the business.” However, while remodeling demand is holding up in smaller repair-and-maintenance and replacement contractor work, large discretionary renovations remain under pressure. Company executives cited high interest rates, housing unaffordability, inflation, tariffs, fuel and energy prices and broader economic uncertain...