Lowe’s CEO Marvin Ellison predicts home renovation on the rise in 2026 | Real Estate Market Insights

Following Home Depot’s announcement that its third-quarter earnings had been down 12 months over 12 months, competitor Lowe’s saw its stock up practically 6%.

Why? Perhaps it has one thing to do with the home improvement chain’s optimistic outlook for the industry in the coming 12 months. 

CEO Marvin Ellison told Yahoo Finance that as a consequence of Americans having “significant equity” and feeling sidelined from shopping for a new home as a consequence of charges, renovations will be on the rise next 12 months.

Will home renovations rise in 2025?

In the last 12 months, tariffs on important uncooked supplies for renovations and homebuilding like timber slowed the industry significantly. 

However, as Ellison pointed out, homeowners and renters are also feeling caught and unable to maneuver into a new home.

In October 2025, lively listings rose 15.3% 12 months over 12 months, marking the twenty fourth straight month of positive aspects. But despite stock rising and charges falling to 12-month lows, houses are spending longer on the market for the nineteenth straight month (63 days, +5 12 months on 12 months).

Lowe’s earnings had been up practically 6% during the third quarter. Christopher Sadowski

CEO Marvin Ellison said owners and renters are feeling caught and unable to maneuver into a new home. steheap – stock.adobe.com

Because of this, Ellison sees a new daybreak approaching for home renovations, and utilizing home equity to do it. 

“We expect homeowners to start, at some point, to tap into these … home equity lines of credit to start to finance larger, more discretionary home improvement projects, because they’re going to be reluctant to give up those sub-4%, sub-3%, 30-year fixed mortgage rates,” he said.

Homeowners, Ellison said, have low mortgage charges however “hate their kitchen … need an extra garage … an extra bathroom, they need a modernized environment.”

There’s data to back this up. Spending on home enhancements and upkeep for owner-occupied houses is predicted to remain regular by means of the end of this 12 months and into mid-2026, according to Harvard’s Joint Center for Housing Studies. 

“We expect homeowners to start, at some point, to tap into these … home equity lines of credit to start to finance larger, more discretionary home improvement projects, because they’re going to be reluctant to give up those sub-4%, sub-3%, 30-year fixed mortgage rates,” Ellison said. Getty Images for Points of Light

Its latest LIRA report predicts that renovation and restore spending will grow about 2.4% in early 2026, then slow barely to 1.9% by the third quarter.

“Upward trends in both remodeling permit activity and single-family home sales suggest that demand for home improvement will remain stable in the coming year,” says Rachel Bogardus Drew, director of the Remodeling Futures Program at the middle. “Despite the modest pace, total homeowner remodeling spending is expected to reach $524 billion in early 2026, a new record high.”

Older owners means more renovations needed

The average age of a home in the US is at an all time high, roughly 44 years old.

Additionally, according to the latest data from the National Association of Realtors®, the typical age of first-time consumers climbed to an all-time high of 40 years.

With each the housing stock and the typical homebuyer on the older aspect, renovations can be needed not only to improve the high quality of the home, however the longevity of time spent in the home. 

The average age of a home in the US roughly 44 years outdated, an all time high. Tupungato – stock.adobe.com

For occasion, according to an early 2025 report from Charles Schwab, virtually half of boomers surveyed (45%) confessed they needed “to enjoy my money for myself while I’m still alive.” For owners, that contains improving their houses to make sure they’ll keep in them as long as attainable. 

Baby boomers—those born from 1946 to 1964—spent an average of $14,140 on home initiatives in 2024, according to an Angi report.

“Homeowners are clearly committed to their homes. Even as economic pressures and challenges to getting projects done mount, the desire to create functional, personalized, and well-maintained spaces is stronger than ever. The optimism for 2025 reflects the enduring value of homeownership as both a financial and emotional investment,” Angie Hicks, co-founder of Angi, told Newsweek. 

According to its research, 93% of owners deliberate home enchancment initiatives in 2025, while 46% are wanting ahead to large-scale initiatives over the next 5 years, such as kitchen remodels (31%) and toilet upgrades (28%). 

This might very a lot play into a growth in renovations in 2026. 

Will uncertainty preserve consumers on the sidelines?

Last week, the average 30-year fixed-rate mortgage price was up two foundation factors to six.24%, per Freddie Mac.

The fixed chorus in latest months is that potential homebuyers received’t be diving into the market in earnest until rates fall below 6%. Whether that’s on the horizon for 2026 stays to be seen, however confidence is on the rise, not just with economists, however also with homebuilders.  

Last week, the average 30-year fixed-rate mortgage price was up two foundation factors to six.24%, according to Freddie Mac. Christopher Sadowski

Builder confidence in the market for newly constructed single-family houses rose one point to 38 in November, according to the National Association of Home Builders/Wells Fargo Housing Market Index. It’s not a big increase, but it surely reveals motion. 

“We continue to see demand-side weakness as a softening labor market and stretched consumer finances are contributing to a difficult sales environment,” said NAHB Chief Economist Robert Dietz.

“After a decline for single-family housing starts in 2025, NAHB is forecasting a slight gain in 2026 as builders continue to report future sales conditions in marginally positive territory.”

If each homebuilding and home renovation could make a comeback in 2026, it might result in great issues for homebuyers and sellers alike.

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