Home Depot’s (HD) second quarter earnings showed that consumers are pulling back on big-ticket discretionary spending. National Kitchen & Bath Association CEO Bill Darcy joins Yahoo Finance Live to discuss the decline in home improvement spending.
Darcy says consumers are "uber sensitive to pricing and especially at the lower and mid price tiers, not as much on the higher end." Consumers "did do a lot of projects during the pandemic and our industry was very healthy through the pandemic," but they "can only take so much" with "these continual price pressures." Darcy notes that consumers are "dealing with high gas prices and inflation" and "these cost pressures" are "causing them to pause a bit during this" time.
Darcy says that "the long game" is a "very strong health for remodeling." "We do see a big rebound" in home remodeling "coming in 2024," mainly "because you have 22 million homes in prime remodeling years. And there’s a lot of repair, replacement, and remodel" that is "required in the North American housing stock," Darcy explains.
