Lowe's CEO says this is the 'most difficult housing market' since the financial crisis

May 21, 2026 - 02:50

Lowe's CEO Marvin Ellison told investors Wednesday that the current housing market represents the most difficult conditions the industry has faced since the 2008 financial crisis. The home improvement retailer reaffirmed its 2026 financial outlook, but acknowledged that do-it-yourself shoppers are pulling back on major renovation projects while still spending on smaller repairs and maintenance.

Ellison pointed to high interest rates, persistent inflation, and low existing home inventory as key factors squeezing consumer confidence. With mortgage rates hovering near multi-decade highs, fewer homeowners are listing properties or moving, which directly reduces demand for big-ticket items like new kitchens, flooring, and bathroom remodels.

Instead, Lowe's is seeing customers focus on smaller, budget-friendly projects such as painting, gardening, and minor plumbing fixes. The shift reflects a broader caution among households who are delaying major investments until economic conditions improve. Ellison noted that while professional contractors remain active, the casual DIY customer is clearly feeling the pinch.

The company's reaffirmed 2026 guidance suggests management expects the housing slump to persist for at least another year. Analysts say the outlook depends heavily on whether the Federal Reserve cuts interest rates in 2025, which could unlock more home sales and spur renovation spending. For now, Lowe's is bracing for a long stretch of cautious consumer behavior.