- As high mortgage rates and home prices delay buying, more Americans are renting longer, buoying demand for home goods retail.
- The median age of first-time homebuyers hit 40 in 2025, up from 36 in 2022, reflecting affordability challenges that are reshaping housing and consumer behavior.
- Multifamily occupancy and retail segments tied to furnishings, appliances, and home improvement are staying resilient, despite a sharp drop in home sales since 2021.
Rising Rents, Steady Retail
With affordability stretched and mortgage rates still high, homeownership is increasingly out of reach for many Americans, reports GlobeSt. As a result, renters are staying put longer—and that’s fueling continued demand in the home goods retail sector. According to Marcus & Millichap, categories like furniture, appliances, and home improvement are seeing stable activity, even as the broader housing market cools.
The Home Buying Pullback
The shift is stark. In 2025, the median age of first-time homebuyers hit 40—up from 36 in 2022 and significantly older than the historical average of 30–32 years. Soaring home prices and elevated mortgage payments are key drivers. With monthly mortgage costs averaging around $3,100—roughly $1,200 more than the average apartment rent—many buyers are priced out, extending the rental phase of their lives.
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Retail’s Ripple Effect
Even with home sales down over 20% from their 2021 peak, home-focused retail is holding firm. Roughly 7% of the country’s $732B in annual retail sales comes from home-related products. Third-quarter retail vacancies remained tight, with grocery-anchored centers at 4.5% and lifestyle/power centers at 4.7%. This suggests stable demand from renters still investing in their living spaces.
Investor Outlook Remains Cautious But Steady
The combination of high home prices and limited affordability is expected to sustain demand for multifamily housing—and by extension, for home goods retailers. Until mortgage rates decline meaningfully, this renter-driven consumer behavior will likely continue supporting a niche but steady corner of retail real estate.
