Forecasts from Harvard University’s Joint Center for Housing Studies (JCHS) and Nationwide suggest that while remodeling is expected to slow, overall spending will continue to climb.

According to JCHS’ Leading Indicator of Remodeling Activity (LIRA), annual spending on improvements and maintenance for owner-occupied homes is projected to reach a record $524 billion in early 2026. Housing experts say homeowners are staying in their homes longer, delaying moves that would normally reset improvement cycles. That dynamic could be key for replacement products and services, such as doors and windows, where performance and energy efficiency can motivate improvements. But there are factors that door and window dealers will need to overcome in 2026—including weaker consumer confidence, says Ryan Brennan, chief business officer at Momnt, a financial technology provider. Brennan expects consumer confidence to weaken somewhat in 2026, as the cumulative cost of goods and services take their toll on household budgets.

“As the cost of everything has gone up, I think consumer confidence in terms of just spending—anything—will go down slightly,” Brennan says. “I think there’s a risk. People are uncertain, but people are continuing to stay in their homes and there are projects that either want to be done or need to be done.”

The distinction between discretionary spending and necessary upgrades will be critical for remodeling contractors in the year ahead, he suggests. But like other experts, Brennan expects overall consumer spending on home improvements to remain flat or increase modestly over the year, even as homeowners are cautious. In the meantime, giving them the option of financing is crucial, he and others suggest.
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“There’s a lot of pent-up demand,” Brennan says. “People are kind of looking at projects and going, ‘All right, we saved up for an extra year in order to afford this,’ or they’re realizing prices are not coming back down and they’re just going to have to do it.”

Demographics also play a role, he says. As older homeowners age in place, in some cases there’s deferred maintenance and replacement needs.

“Historically, you kind of did a home upgrade or you moved,” he says. “As you stay put, there’s a lot of work that gets ignored, and now there are projects that need to be done—whether you like it or not.”

Doors and windows sit squarely in that category, he suggests.

“Your windows, sooner or later—something’s going to start leaking. They start to age out,” Brennan says. “You need to upgrade because you’re watching the cost of your heating or cooling go up astronomically because you’ve got leaky windows.”

While in past years, amid historically low interest rates, homeowners were apt to arrange “cash out” refinancing, tapping into home equity, “No one wants to get rid of that primary mortgage that is such a low rate,” he says. As a result, unsecured, point-of-need financing is gaining traction as an alternative to mortgage-based lending, Brennan suggests.

At the same time, “It is also surprising to see that many dealers do not currently offer financing at all and so they are missing out on a substantial number of prospects who seek only companies which offer it,” writes [DWM] blogger Jim Plavecsky. “Face it, if you want to buy windows now and want to pay for them next year … or when you are expecting some cash to come into your life, then who are you going to call? The dealer that takes only credit cards or the dealer that is offering interest-free 12-18 month same-as-cash, or low-interest ‘bridge loans’ to get you your doors and windows now versus waiting until your cash situation improves?”

Meanwhile, financing can be integrated into the sales process to avoid disrupting trust during a costly purchase, Brennan says. Allowing homeowners to complete applications on their own devices and reinforcing transparency around loan terms can help reduce friction, he says.
For door and window dealers, the opportunity lies in offering financing not as a last resort, but as a strategic tool to convert underlying demand.

“During the high demand years of 2021-22, the industry didn’t need much in the way of dealer financing,” Plavecsky says. “Consumer cash was in big supply due to cancelled vacations.”

So far, 2026 is shaping up to be a much different time and year.

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This article was originally published on DWM Magazine.

About DWM Magazine

‍Door and Window Market magazine serves the many facets of the residential door and window industry and reaches manufacturers, dealers, installers and suppliers. We are the largest publication serving the door and window industry. Our editorial content is targeted specifically to readers’ unique needs, including market developments and trends, new technologies, best practices and even current events that impact the door and window industry. We address issues that are impacting their businesses, such as government regulation, energy efficiency, and operating in an increasingly competitive marketplace, among many others. Reach is 25K.