Unfortunately for retailers in the home sector, 2026 will likely look an awful lot like 2025. …While the pandemic offered a temporary financial boost, broad economic uncertainty caused many consumers to pull back on discretionary spending, leading to a decline in the high-ticket purchases. …The category has consistently seen year-over-year sales declines, according to the US Department of Commerce. …As was the case over the past few years, the weak housing market — driven by a lack of inventory and elevated interest rates — poses one of the biggest threats to the home sector this year. “The housing market is just stuck in neutral,” Zak Stambor said. “By and large, just few people are moving, and the lack of housing turnover means there’s a smaller-than-normal market for home goods.” “It’s the uncertainty that’s really driving the hesitation on the consumer side — where they should go, when they should buy, what they should buy in this market.”