The home decor industry is set for a significant upswing in 2026, driven by a series of positive economic shifts that make this the ideal moment for homeowners to invest in their living spaces. From easing mortgage rates to favorable changes in trade policy and a surge in new construction, the stars are aligning for a robust home market.
Lower Mortgage Rates are Boosting Buyer Confidence
After years of navigating a challenging housing market with high interest rates, prospective homebuyers and existing homeowners are finally seeing some relief. Experts forecast that average 30-year fixed mortgage rates will settle around 6% to 6.4% in 2026, a notable drop from previous highs. This improved affordability is expected to spur home sales and encourage a new wave of homeowners eager to furnish and personalize their spaces.
Tariff Delays Offer Price Stability
In a significant win for the home furnishings sector, the White House recently announced a one-year delay on planned tariff increases for imported upholstered furniture, kitchen cabinets, and vanities. The current 25% tariff will remain in place, rather than escalating to 30% or even 50% as scheduled. This predictable pricing environment ensures that quality decor remains accessible and encourages consumers to move forward with major purchases and renovation projects they might have otherwise postponed.
New Construction is Meeting Demand
While overall housing starts experienced a decline in recent years, projections for 2026 indicate an expected increase in single-family home construction. Furthermore, a robust pipeline of multifamily construction (apartments and condos) is adding much-needed supply to the rental market. As new homeowners and renters move in, they seek items to make their new houses into homes.
Embracing 2026 Decor Trends
Howard Elliott believes these current trends perfectly align with this market expansion, emphasizing authenticity, sustainability, and personal expression. This year is all about creating spaces that feel collected over time.
- Warmth & Texture: Expect to see deep, saturated hues, mixed textures, and rich color stories that create a cocooning effect.
- Natural Materials: Darker-toned woods, tactile metals, and organic elements are making a strong return, adding character and warmth to interiors.
- Character & Individuality: Mismatched, vintage, and artisanal pieces are favored over matching sets, allowing homeowners to tell their own story through their decor.
