Friday, July 10, 2026 from Floor Covering Weekly

Where, why & how consumers are spending their money
By Mallory Cruise-McGrath

The economy, a fluctuating housing market and evolving lifestyle demands are just some of the factors influencing current consumer purchasing decisions. But that doesn’t mean consumers aren’t spending — there’s simply a shift in how and where money is being spent. For instance, consumers are tending to make purchase decisions based on a combination of value, convenience, trust and personal relevance.

“Elevated interest rates are causing homeowners to stay in place and are driving greater investment into existing homes rather than new purchases,” explained Danielle Jensen, director of residential marketing, Mannington. “At the same time, inflation and economic uncertainty have made consumers more selective, leading to a more cautious and value focused mindset.”

The result is not a complete pullback in spending, but a shift in how and where dollars are allocated. “Consumers are favoring projects that feel necessary, functional and built to last,” she said.

Indeed, consumers are still spending. At its sixth annual State of Retail & the Consumer event, the National Retail Federation (NRF) forecasted that retail sales in 2026 will grow by 4.4 percent over 2025 to $5.6 trillion.

However, consumer confidence is nuanced right now, said Nicole Priem, Mohawk’s senior director of brand experience. “A significant share of homeowners tell us the economy has influenced their home purchase plans, and yet renovation activity remains resilient — median spend is holding steady and high-end projects are actually increasing,” she said. “What we’re seeing is that consumers are being more deliberate.”

Consumers are also placing greater emphasis on return on investment, said Brian Haraf, Mohawk’s senior vice president, consumer. “They’re asking not only whether they’ll enjoy the product today, but whether it will hold up over time, add value to their home and justify the upfront investment.”

Money Well Spent

Mannington’s Jensen noted that consumer spending is concentrated across a few main areas including essential living costs, services/experiences and investments in the home. “At the foundation, most household budgets continue to go toward everyday necessities like housing, food, transportation and healthcare, which remain non-negotiable,” she said.

Kitchens and bathrooms continue to command the largest share of renovation budgets as they carry the most emotional weight and the highest visibility, offered Priem. “Within flooring, the biggest shift is in performance expectations. Features that used to be premium are now baseline. Consumers have also become significantly more sophisticated about what a quality floor looks and feels like — and they’re filtering out products that don’t clear that bar earlier in the process than they used to.”

Consumers are also becoming more intentional in their decision making and a placing a stronger focus on a floor’s performance and practicality, said Mannington’s Jensen.

“Flooring is often part of a larger renovation project, meaning it must compete with higher priority categories for budget allocation. To earn its place, it needs to deliver clear value, through durability, ease of maintenance and long-term reliability, while still meeting the consumer’s desire for elevated design,” she said.

And becuase spending has been tightened due to economic conditions, offered Daniel Cassidy, Shaw’s vice president of consumer insights and digital marketing, “Projects are being delayed, not necessarily canceled, and the purchase is now driven by the value the product offers, such as durability, design and ROI,” he said.

Ultimately, consumers are looking for flooring that is worth the money. “Once they’ve made a choice to invest in a new floor, they want to make that purchase having confidence in the floor’s long-term durability,” said Julie Thomas, senior retail marketing manager, Karndean.

Emerging Trends

Several emerging trends will shape consumer purchasing moving forward. “First, durability is becoming the primary premium story — consumers who plan to stay in their homes long-term are making investment decisions, not just purchase decisions. Second, the younger buyer cohort is forming brand preferences right now, and the brands that build equity with them today will harvest that for decades,” Priem explained. “Third, social platforms are becoming the primary discovery channel for home products.”

And with trends moving towards value and investment, flooring purchase decisions will not be shaped by style alone. “They’re also shaped by the benefits the flooring offers, such as performance and longevity,” Shaw’s Cassidy said. “Consumers will want to know that their flooring will last and not need to be replaced too soon. The demand for quality, sustainable solutions that meet real-life needs is what will continue to drive demand.”

As well, “an aging housing stock will also require ongoing repair and replacement, ensuring steady demand across categories,” said Jensen. “Overall, as economic conditions stabilize, we anticipate a gradual return to more balanced spending, but we expect a continued emphasis on thoughtful, intentional purchases,” she said.