Home Depot says consumers are spending less on home improvement amid economic uncertainty

Home Depot on Tuesday noted that consumers are not spending large amounts on home improvement projects this year, amid uncertainty about the country's economy.

The home improvement giant was at the top of its game during the COVID-19 pandemic because consumers were stuck at home and decided to focus on home renovations and other home improvement projects. But now that the pandemic has passed, sales on building materials, lumber and construction-related equipment are lower, according to CNN.

“The underlying long-term fundamentals supporting home improvement demand are strong," Ted Decker, Home Depot’s CEO, said in a news release. “[But] during the quarter, higher interest rates and greater macro-economic uncertainty pressured consumer demand more broadly, resulting in weaker spend across home improvement projects."

Home Depot lowered its projected sales expectations for the year, and expects sales at stores open at least 12 months to fall between 3% and 4% for fiscal year 2024, compared to fiscal year 2023. Home Depot’s sales at those stores open at least a year already dropped 3.6% last quarter, the company also said. 

Home Depot's business is closely tied to the housing market, where prices are elevated nationwide. The median price of a previously owned home in the United States rose to $426,900 in June, which is an increase of 4.1% from the previous year. However, the demand for housing is still predominantly greater than the supply in most markets.

Misty Severi is an evening news reporter for Just The News. You can follow her on X for more coverage.