A new study from a major research company shows consumers still believe in their homes and are willing to put their money where their mouths are.
Circana, the well-known research company that specializes in consumer products, just released new findings that show even as the housing market remains soft, Americans are still investing in their homes. This is good news for the building trade that has been concerned homes may not be quite the attractions for people they once were.
According to Circana’s latest Future of Home forecast, US home-industry dollar sales are expected to grow to $43.7 billion in 2026, up 2.9 percent from 2025, even as unit demand remains pressured.
“Higher average selling prices, replacement demand, innovation and evolving consumer routines are supporting growth,” they reported. “Circana expects many of the drivers shaping today’s home-products market to remain in place and fuel further growth through 2027, reaching more than $45.6 billion in 2028.”
Consumers are not simply cutting back, Circana said. They are prioritizing products that deliver value at home, from preparing meals and beverages to cleaning and maintaining their homes. At the same time, heavily used products purchased in 2020 and 2021 are beginning to enter replacement cycles.
“When consumers feel the financial pinch, they tend to eat more meals at home, which can be four to five times cheaper than dining out. Similarly, entertaining at home becomes more common as a cost-saving measure,” said Joe Derochowski, home industry advisor for the company. “Additionally, we anticipate that frequently used items purchased in 2020 and 2021 will begin to be replaced over the next few years.”
Circana said the trend extends to major appliances, where half of recent purchases were replacements. Of recently replaced major appliances, 38 percent were just one to five years old, up 9 percentage points from August 2025, signaling that replacement is increasingly reaching newer products.
“What we’re seeing is not a consumer who has stopped spending, but one who is spending with greater intention,” added Derochowski. “Consumers continue to invest in products that help them save money, simplify routines, improve comfort and get more value from life at home. As replacement cycles accelerate and innovation continues, we expect those behaviors to support growth opportunities across the home-products market for years to come.”
