MW Home-renovation plans are being shelved. What does that tell us about the economy?

By Jeffry Bartash

Fewer Americans are researching bathroom- and kitchen-remodeling work

Fewer people are looking into kitchen and bathroom remodeling. What does it mean?

Those big bathroom- and kitchen-remodeling projects that homeowners may have been thinking about? Some are apparently putting them on hold because of fresh anxiety about the economy.

The first sign these types of big-spending projects were being postponed came last month after Home Depot Inc. $(HD)$ and Lowe's Cos. Inc. $(LOW)$ reported recent sales. Executives told investors that do-it-yourselfers and other homeowners were spending less on large remodeling projects.

As it turns out, fewer people are researching online for bath- and kitchen-remodeling plans, according to Neil Dutta, head of macroeconomics at Renaissance Macro Research.

Why does it matter? People tend to put off big projects that cost a fair amount of money when they worry more about the economy, or if they fear they might lose their job.

The U.S. economy still appears to be in decent shape, based on the most recent data, but growth could be starting to slow.

More ominously, hiring has dried up and employment might even be shrinking. It's taking longer for the unemployed to find work and Americans say new jobs have become harder to find.

What also doesn't help matters are rising prices for construction-related goods and services tied to higher U.S. tariffs.

The Trump administration just announced it would raise tariffs on upholstered furniture, kitchen cabinets and bathroom vanities by 25% starting next week, with duties rising to as high as 50% in 2026.

The costs of these tariffs are unlikely to show up in the price of home furnishings right away. Typically, the process takes several months.

Online-search inquiries are not enough, of course, to reveal what's really going on in the economy. Yet in the absence of critical government data delayed by the ongoing federal shutdown, Wall Street is searching for any clues it can find about the trajectory of U.S. growth.

"I consider this a 'pipeline' indicator," Dutta wrote in a note to clients. "If fewer people are searching on these terms today, I would assume there is less in the pipeline for future renovation spending."

-Jeffry Bartash

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October 09, 2025 14:21 ET (18:21 GMT)

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