April 29, 2026
urban_light/Depositphotos.com
How Can Home Improvement and Furnishings Retailers Work Around Gen Z’s Lack of Homeownership?
In a lengthy report for Forbes, contributor Greg Petro laid out the evidence for a significant shift in demand for certain retail products coming from Gen Z — most notably, those in the home improvement and home furnishings categories.
“An American aspiration for generations since at least the end of World War II, home ownership has become a luxury that most people under the age of 30, Gen Z, can only dream about – if they even do. Evidence is mounting that many in this emerging generation of consumers are content to rent and spend their spare money on themselves – on looking and feeling good and having authentic experiences,” Petro began.
“This trend is a looming challenge for retailers in the home improvement and furnishing industries whose fortunes ebb and flow with real estate cycles. Everyone seems to agree that, for most, shelter has become unaffordable. Given all the circumstances at home and abroad, no one seems to think there will be a turnaround anytime soon,” he added, pivoting to add that sales volumes of existing homes had tumbled by a whopping 40% since 2020 and 2021, the last time the aforementioned retail segments boomed.
Describing the current situation as a definite retrenchment period, and drawing comparisons to the housing market crash of nearly two decades ago in 2008, Petro outlined a few data points supporting the claimed downturn:
- Wayfair has fallen from its “overnight sensation” highs of 2020 to having posted revenue declines in four of five of the past years, with $4.8 billion in losses attached.
- Lowe’s has seen its yearly revenue tumble by 10% over the past four years, while Home Depot has held the line — although its profit margins have fallen by a notable 20%.
- Even IKEA, showing relatively strength, has seen sales growth dip during half of the past six years.
Gen Z Appear Locked Out of Homeownership, At Least For Now: How Can Retailers Serve This Demographic?
Another point of distinction for Petro — while millennials eventually drove something of a turnaround when it came to homeownership, the keys seem farther out of reach for Gen Z, and they’re simply buying less “stuff,” favoring experiences and wellness products.
“That was then. This time is very different. Gen Z will not be rescuing the housing industry anytime soon. For starters, either by choice or necessity, close to half are still living with their parents, according to U.S. Census Bureau data from 2024. The kinds of living-wage jobs their parents were able to get in the 2010s are gone or going, courtesy of AI,” Petro wrote, adding that zoomers were more likely to buy their “nesting stuff” from thrift shops, online resale platforms, or a Habitat for Humanity Re-Store.
One approach? Move like IKEA — per YouGov data supporting its popularity among Gen Z — by focusing on assortment aimed at renters. With boomers now making up fully 40% of first-time home buyers, and the expectation that the vast majority of older Americans plan to leave their estate to their children, this may be at least one short-term option for retailers in the home furnishings and home improvement game.
BrainTrust
Gary Sankary
Retail Industry Strategy, Esri
Shep Hyken
Chief Amazement Officer, Shepard Presentations, LLC
Lisa Goller
B2B Content Strategist
Recent Discussions
Discussion Questions
Do you believe home improvement and furnishings retailers are currently doing enough to entice Gen Z consumers? Why or why not? What opportunities are being missed?
How important is it for retailers in these categories to cultivate loyalty and interest with younger U.S. consumers?
Poll
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Gen Z is about to inherit the greatest transfer of wealth from Boomers in history. This is short-lived. And those who are shopping now, who may be renting will remember those who continued to court their business.
? the parents of 14-29 yo are passing away.
Currently it’s Xers dealing with eldercare… and parents transitioning to assisted living.
Bob is right — Millennials and Gen Z are going to inherit plenty of money from Boomers, but many of us plan on being around for another few decades. Somehow, as a society, we’ve made the odd choice that most people should not make enough money. Retailers are doing what they can to court consumers, but but they can’t adequately counter the economic headwinds.
Sad when 1st time home buyers, of any age, have to wait to be orphaned to be able to own a home. And to never to host a holiday in the owned (vs rented) home… as their family had to pass away beforehand
Home improvement and furnishing retailers have been effective at getting on Gen Zs’ radar. From bedroom glow-ups during the pandemic to dorm room décor shopping sprees, Gen Zs feel drawn to the home category for self-expression and comfort. Savvy retailers will nurture these relationships and adjust to changing needs as these shoppers enter the work force and start families.
I do not fear for home improvement stores — nor the pervasive hardware store network serving communities around the world. Primarily, the latest data I was able to find (2025) suggests Gen Z home ownership is only slightly below what it has been historically for the age group.
Of course, many media outlets have predicted disasters because it draws readers. But as they discuss the issues facing Gen Z in buying a home, I’m only reminded of all the challenges I faced at age 28 (more years ago than I want to mention) attempting to buy a home. And, we were also told how hard it was for “young people” to buy homes at the time.
Certainly Home Depot sells things that don’t require owning a home to buy – those things ranging from light bulbs up thru tools and appliances – so that should give them an opening wedge; but, yes, it’s an issue, and one they don’t have much control over.
Of course, it should be pointed out, someone still owns the homes Gen Z lives in, so the overall demand shouldn’t be decreasing…even if the target audience isn’t what one would expect.
A bit at odds with the clickbait headline of “Z”…
vs the actual issue of millions of people in USA not able to afford a home to own.
“First time homebuyer” issue is NOT just a 14-29 year-old issue.
In many cases, school and starting a career should be a priority over a mortgage.
The 14-21yo probably has parent’s roof over head.
For the 20 something digital nomad, they have more freedom to try out places and not be stuck mowing a lawn instead of traveling.
As each successive generation steps away from co-habituating (marriage or not),
the INDIVIDUALISM of the USA will continue the housing shortage.
The home building industry was never equipped to create/rebuild 340+ Million separate houses…. all in desirable areas, near services and places of stable employment.
A long shot, but if families worked together on an intergenerational level… before waiting for deaths (& assumed $$ left to them)… there may be options. Two families on the block of about 8 houses where I grew up, did intrafamily swaps. The elder lady on the block… her grandson raised his kids in the house… 4 blocks from the K-8 school. The house next door… the grandparents moved to the eldest offspring’s house, and that son is raising the grandkids near the school. Certainly not logistically right for everyone, but wonder how many families don’t even talk about it.
My plan for the inheritance of my children is to “spend the cash” & “will the properties.” While this may result in a delay in home ownership, once the dam breaks, Gen Z will want to not only own these properties, but also remodel & update the homes & estates of their Baby Boomer parents.
Home improvement & furnishings retailers need to stay the course as well as position themselves as the best alternative to modernize senior dwellings.
Have you seen the TikToks and Instagram reels where young renters transform apartments without harming the walls or floors? Gen Z may be skipping traditional home improvement stores, but someone is cashing in on décor, peel-and-stick wallpaper, paint, and DIY materials.
Most home improvement retailers are still optimized for ownership, not mobility, and that is the disconnect. Gen Z lives in smaller, temporary spaces, so demand shifts toward modular, renter friendly, and experience driven products. Brands like IKEA are closer to the mark, but the industry overall underutilizes personalization, social discovery, and resale integration. There is a missed opportunity to build digital ecosystems around “living journeys” rather than transactions. Cultivating early loyalty is critical. Even if Gen Z is renting today, their lifetime value spans decades, and the brands that guide them now will win when ownership eventually becomes viable.
If the operative function for home improvement retailers is homeownership, there is a structural trend regarding marriage. Without marriage and a family to fill the house, there is little incentive to own a home.
The marriage age has dropped precipitously over the last 50 years. Today, the median age for men marrying has surpassed 30 years old. This is not a problem. It is reality, and don’t expect it to reverse.
I am reading your points, but also seeing the opposite
The affordable housing shortage has ben getting worse as co-habitation decreases.
People are living in individualism… wanting to own their own place (without partner).
And, without a partner, there is greater need to own real estate as equity. As there is no 2nd income to depend on (or plan retirement on).
Different incentives to own a home. But not 340 Million homes avail in USA= problem.
A permanent change of the “American Dream”??… tbd
I’m not as confident that the wealth transfer will be the fix that we might hope for. Gen Z is navigating a triple-threat of historic college debt, a shortage of affordable starter homes, and growing career uncertainty driven by AI disruption. Financial survival is the key driver right now, not long-range planning.
Plummeting birth rates are telling — this generation is pushing off the big life choices that drove economic behavior for their parents to much later than previous generations did. That directly impacts lifetime value for home-improvement and furnishings retailers in ways a renter-focused assortment won’t fix.
And while many Gen Zers will eventually inherit Boomer wealth, current data shows 54% of U.S. families lack enough emergency savings to cover three months of expenses. Inherited wealth is far more likely to go to debt service than a down payment.
Are retailers doing enough to entice Gen Z? Honestly, “enticing” is a marketing solution to an economic problem. We may be returning to a historical norm where homeownership simply isn’t available to the masses, and touch-up paint and light bulb purchases will not make up that gap.
Re: generational transfer
What comes of that depends on how well elders (of any generation) pre plan & cover their medical needs, esp elder women.
By the time the Silent+ Boomer $ fortunes pass through X and Millennials, the Zers should hope trusts had been pre planned for the grand & great grandchildren. That Z inheritance should also be used for eldercare of their elders, as USA medical care system is decimated by the government.
Approx for 2026.
Baby Boomers (1946–1964): ~64-67 million.
Gen X (1965–1980): ~65 million
Millennials (1981–1996): ~72-74 million.
How many of us older customers (Millennial and older) owned homes in our early 20’s? And regardless of us renting, we still bought shelves, organized closets, and did many other “projects” that were reasonable enough to be temporary before one day owning a home. IKEA has it figured out. It is during these years that other retailers must find ways to attract younger customers and get them into the habit of shopping at their stores for home improvements. Like the opening words from the song, The Greatest Love of All, made famous by George Benson and then again by Whitney Houston, which are: I believe the children are our future!”
Gen Z’s lack of homeownership is not a short-term challenge. It is changing how demand shows up in home improvement and furnishings. These customers are not investing in permanent upgrades. They are spending on flexibility, design, and products that fit rented spaces. Retailers that continue to rely on traditional homeownership-driven demand will see slower growth.
The shift requires a change in strategy. Retailers need to focus on renter-friendly product range and easy-to-install solutions that do not require long-term commitment. Pricing also needs to reflect shorter usage cycles. The opportunity is to serve how customers live today, not how the category has operated in the past.
OK, so Gen Z are renters. Don’t renters furnish their apartments? Don’t landlords have to spend on the upkeep of the property? Given the demographic and financial realities the article discusses, it’s surprising it doesn’t talk about new home construction rates versus prior eras. I would think that would be a pretty big factor also.
Quite right, Jeff! Demand is still there, it’s just that the data are being misread – as I note in my own comment.
There is a severe misreading of the data here. 2020 and 2021 were exceptional years for home furnishings – both because the pandemic forced people to stay home more – which dramatically increased spending on homewares – and because stimulus checks gave people a lot more money to spend. You cannot use those years as a baseline for comparison and declare a decline is down to the housing market, Gen Z or anything else. The more appropriate comparison is with 2019 and, by this measure, Lowe’s sales are up 19.6% (this includes acquisitions, though comparable are still strongly positive). Wayfair is up. So too is IKEA. So is overall home furnishings and home improvement spending. It is very hard to suggest there is structural decline against these numbers.
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Gen Z is about to inherit the greatest transfer of wealth from Boomers in history. This is short-lived. And those who are shopping now, who may be renting will remember those who continued to court their business.
? the parents of 14-29 yo are passing away.
Currently it’s Xers dealing with eldercare… and parents transitioning to assisted living.
Bob is right — Millennials and Gen Z are going to inherit plenty of money from Boomers, but many of us plan on being around for another few decades. Somehow, as a society, we’ve made the odd choice that most people should not make enough money. Retailers are doing what they can to court consumers, but but they can’t adequately counter the economic headwinds.
Sad when 1st time home buyers, of any age, have to wait to be orphaned to be able to own a home. And to never to host a holiday in the owned (vs rented) home… as their family had to pass away beforehand
Home improvement and furnishing retailers have been effective at getting on Gen Zs’ radar. From bedroom glow-ups during the pandemic to dorm room décor shopping sprees, Gen Zs feel drawn to the home category for self-expression and comfort. Savvy retailers will nurture these relationships and adjust to changing needs as these shoppers enter the work force and start families.
I do not fear for home improvement stores — nor the pervasive hardware store network serving communities around the world. Primarily, the latest data I was able to find (2025) suggests Gen Z home ownership is only slightly below what it has been historically for the age group.
Of course, many media outlets have predicted disasters because it draws readers. But as they discuss the issues facing Gen Z in buying a home, I’m only reminded of all the challenges I faced at age 28 (more years ago than I want to mention) attempting to buy a home. And, we were also told how hard it was for “young people” to buy homes at the time.
Certainly Home Depot sells things that don’t require owning a home to buy – those things ranging from light bulbs up thru tools and appliances – so that should give them an opening wedge; but, yes, it’s an issue, and one they don’t have much control over.
Of course, it should be pointed out, someone still owns the homes Gen Z lives in, so the overall demand shouldn’t be decreasing…even if the target audience isn’t what one would expect.
A bit at odds with the clickbait headline of “Z”…
vs the actual issue of millions of people in USA not able to afford a home to own.
“First time homebuyer” issue is NOT just a 14-29 year-old issue.
In many cases, school and starting a career should be a priority over a mortgage.
The 14-21yo probably has parent’s roof over head.
For the 20 something digital nomad, they have more freedom to try out places and not be stuck mowing a lawn instead of traveling.
As each successive generation steps away from co-habituating (marriage or not),
the INDIVIDUALISM of the USA will continue the housing shortage.
The home building industry was never equipped to create/rebuild 340+ Million separate houses…. all in desirable areas, near services and places of stable employment.
A long shot, but if families worked together on an intergenerational level… before waiting for deaths (& assumed $$ left to them)… there may be options. Two families on the block of about 8 houses where I grew up, did intrafamily swaps. The elder lady on the block… her grandson raised his kids in the house… 4 blocks from the K-8 school. The house next door… the grandparents moved to the eldest offspring’s house, and that son is raising the grandkids near the school. Certainly not logistically right for everyone, but wonder how many families don’t even talk about it.
My plan for the inheritance of my children is to “spend the cash” & “will the properties.” While this may result in a delay in home ownership, once the dam breaks, Gen Z will want to not only own these properties, but also remodel & update the homes & estates of their Baby Boomer parents.
Home improvement & furnishings retailers need to stay the course as well as position themselves as the best alternative to modernize senior dwellings.
Have you seen the TikToks and Instagram reels where young renters transform apartments without harming the walls or floors? Gen Z may be skipping traditional home improvement stores, but someone is cashing in on décor, peel-and-stick wallpaper, paint, and DIY materials.
Most home improvement retailers are still optimized for ownership, not mobility, and that is the disconnect. Gen Z lives in smaller, temporary spaces, so demand shifts toward modular, renter friendly, and experience driven products. Brands like IKEA are closer to the mark, but the industry overall underutilizes personalization, social discovery, and resale integration. There is a missed opportunity to build digital ecosystems around “living journeys” rather than transactions. Cultivating early loyalty is critical. Even if Gen Z is renting today, their lifetime value spans decades, and the brands that guide them now will win when ownership eventually becomes viable.
If the operative function for home improvement retailers is homeownership, there is a structural trend regarding marriage. Without marriage and a family to fill the house, there is little incentive to own a home.
The marriage age has dropped precipitously over the last 50 years. Today, the median age for men marrying has surpassed 30 years old. This is not a problem. It is reality, and don’t expect it to reverse.
I am reading your points, but also seeing the opposite
The affordable housing shortage has ben getting worse as co-habitation decreases.
People are living in individualism… wanting to own their own place (without partner).
And, without a partner, there is greater need to own real estate as equity. As there is no 2nd income to depend on (or plan retirement on).
Different incentives to own a home. But not 340 Million homes avail in USA= problem.
A permanent change of the “American Dream”??… tbd
I’m not as confident that the wealth transfer will be the fix that we might hope for. Gen Z is navigating a triple-threat of historic college debt, a shortage of affordable starter homes, and growing career uncertainty driven by AI disruption. Financial survival is the key driver right now, not long-range planning.
Plummeting birth rates are telling — this generation is pushing off the big life choices that drove economic behavior for their parents to much later than previous generations did. That directly impacts lifetime value for home-improvement and furnishings retailers in ways a renter-focused assortment won’t fix.
And while many Gen Zers will eventually inherit Boomer wealth, current data shows 54% of U.S. families lack enough emergency savings to cover three months of expenses. Inherited wealth is far more likely to go to debt service than a down payment.
Are retailers doing enough to entice Gen Z? Honestly, “enticing” is a marketing solution to an economic problem. We may be returning to a historical norm where homeownership simply isn’t available to the masses, and touch-up paint and light bulb purchases will not make up that gap.
Re: generational transfer
What comes of that depends on how well elders (of any generation) pre plan & cover their medical needs, esp elder women.
By the time the Silent+ Boomer $ fortunes pass through X and Millennials, the Zers should hope trusts had been pre planned for the grand & great grandchildren. That Z inheritance should also be used for eldercare of their elders, as USA medical care system is decimated by the government.
Approx for 2026.
Baby Boomers (1946–1964): ~64-67 million.
Gen X (1965–1980): ~65 million
Millennials (1981–1996): ~72-74 million.
How many of us older customers (Millennial and older) owned homes in our early 20’s? And regardless of us renting, we still bought shelves, organized closets, and did many other “projects” that were reasonable enough to be temporary before one day owning a home. IKEA has it figured out. It is during these years that other retailers must find ways to attract younger customers and get them into the habit of shopping at their stores for home improvements. Like the opening words from the song, The Greatest Love of All, made famous by George Benson and then again by Whitney Houston, which are: I believe the children are our future!”
Gen Z’s lack of homeownership is not a short-term challenge. It is changing how demand shows up in home improvement and furnishings. These customers are not investing in permanent upgrades. They are spending on flexibility, design, and products that fit rented spaces. Retailers that continue to rely on traditional homeownership-driven demand will see slower growth.
The shift requires a change in strategy. Retailers need to focus on renter-friendly product range and easy-to-install solutions that do not require long-term commitment. Pricing also needs to reflect shorter usage cycles. The opportunity is to serve how customers live today, not how the category has operated in the past.
OK, so Gen Z are renters. Don’t renters furnish their apartments? Don’t landlords have to spend on the upkeep of the property? Given the demographic and financial realities the article discusses, it’s surprising it doesn’t talk about new home construction rates versus prior eras. I would think that would be a pretty big factor also.
Quite right, Jeff! Demand is still there, it’s just that the data are being misread – as I note in my own comment.
There is a severe misreading of the data here. 2020 and 2021 were exceptional years for home furnishings – both because the pandemic forced people to stay home more – which dramatically increased spending on homewares – and because stimulus checks gave people a lot more money to spend. You cannot use those years as a baseline for comparison and declare a decline is down to the housing market, Gen Z or anything else. The more appropriate comparison is with 2019 and, by this measure, Lowe’s sales are up 19.6% (this includes acquisitions, though comparable are still strongly positive). Wayfair is up. So too is IKEA. So is overall home furnishings and home improvement spending. It is very hard to suggest there is structural decline against these numbers.