Home brands target renters as ownership remains out of reach for many

New Economic Realities // March 30, 2026 Home brands target renters as ownership remains out of reach for many By Mitchell Parton Homeownership is getting less and less achievable by the year, especially for young people, leading home furniture and decor brands to change their tune.

The typical age of first-time homebuyers reached an all-time high of 40 last year, according to a survey of more than 173,000 recent homebuyers by the National Association of Realtors. The share of first-time buyers in the market has contracted by 50% since 2007, according to the organization. Today, the median price of homes sold in the U. S.

is about $405,000. That’s $100,000 (or 30%) more than it was 10 years ago, according to the U. S. Census Bureau and Department of Housing and Urban Development data, per the Federal Reserve Bank of St. Louis. The average mortgage rate remains elevated at about 6%, making it difficult for some people to get a loan with monthly payments they can afford.

That rate is down a bit from its 2023 high of almost 8% but still far above the sub-3% rates that defined the post-Covid housing boom in 2020 and 2021.

Retail executives in the home space, as well as industry analysts, told Modern Retail that brands have had to focus more on products that are ideal for renters and change their marketing tactics to appeal to that demographic.

They’re also generally catering to people on tighter budgets, regardless of age range or income class, given the uncertainty in the economy and higher housing costs that eat up household expenses.

“We have to work with what the temperature is, of the housing market, to be able to meet the customer in the way that they need to be met, offer the right solutions and be affordable,” said Shideh Hashemi, chief marketing officer for IKEA U. S. “Homebuying is an occasion that drives a great need, but there are many needs across a lifetime and life stages.”

A changing home consumer landscape Home brands have seen their customer base change dramatically in recent years, in both age and behavior. Hashemi said IKEA has been tracking consumer sentiment around the American Dream for about the last 10 years, and found that younger people value stability and full life experiences more than home ownership.

“Attitudes around home ownership amongst the younger generation are evolving a lot,” she said. “That’s not necessarily the end destination.” Additionally, Hashemi said the retailer has seen an increase in financing usage over the past couple of years, and that people may skip a bathroom refresh to instead just change out their vanity, for example.

Or, instead of a kitchen remodel, they may just change out the countertops. “People are very budget-oriented, so affordability is really important.”

Lee Mayer, CEO of Havenly Brands, a portfolio of interior design businesses and home furnishing brands that has historically catered to homeowners, said the company’s median customer has gotten about eight years older over the last decade. Additionally, she said the company has more renters in its customer base.

She said Havenly has found that people between the ages of 27 and 35 are more often living in apartments than in the past, and that has reflected in the company’s sales. “Younger buyers are no longer buying some of the more premium products that are a little more permanent, because they are less likely to buy a home,” she said.

Havenly brands’ Interior Define (which sells custom furniture), Citizenry and St. Frank brands used to have more younger customers, but their customers have gotten older, according to Mayer. She said this is likely because custom furniture doesn’t make as much sense for renters, and Citizenry and St. Frank are a bit more expensive.

Retailers generally have been focusing less on big-ticket categories like large furniture or appliances, according to Cristina Fernández, managing director and senior research analyst at Telsey Group. Fernández covers home furnishings and other sectors.

She said home retailers have been centering more on decor and accessories, as well as more promotional activity, to lure in customers waiting for deals. “People still want their home to look nice, but they don’t want to spend thousands of dollars,” Fernández said.

“They might just buy some new pillows, or some new bedding, some candles, decor types of things for seasonal; kitchen products are still doing well.” Fernández attributes the challenges in the housing market to recent M&A moves and financial troubles in the space.

These include The Home Depot buying SRS Distribution, a distribution company for professional roofers, landscapers and pool contractors in 2024; as well as recent bankruptcies of At Home and The Container Store over the past couple of years. (The Container Store has since exited bankruptcy.) “You have low dema