Weak DIY Demand Weighs on Home Depot Amid Housing Uncertainty

Home Depot is facing weak DIY demand due to cautious consumers deferring larger home-improvement projects. In its second quarter of fiscal 2026, the company reported that Pro customers outperformed DIY shoppers, with positive comps and growth in key categories like live goods, mulch, soils, and hardscapes.

The weakness is largely attributed to an unfavorable housing and consumer backdrop, including continued consumer uncertainty and housing affordability pressures. Housing turnover remains near historically low levels, but management noted some improvement when interest rates ease.

However, the situation doesn't appear alarming, as customers continue to engage in smaller repair and maintenance projects. 13 of Home Depot's 16 merchandising departments generated positive comps during the quarter, while big-ticket transactions above $1,000 rose 2.4% year over year.