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Online Marketing for Small Home Improvement Companies in a Bad Economy

Online Marketing for Small Home Improvement Companies in a Bad Economy

If you run a business that provides home improvement related services, including services such as roofing, landscaping, well drilling, and so on, you're not alone in feeling the impact of slowed consumer spending. These industries were hit hard in 2024 and 2025. Other home improvement related companies across the country are facing the same challenges, as homeowners have cut back on renovation projects.

Below are just a few of many articles from 2024 and 2025 that highlight the decline in home improvement spending, and some that reiterate the need for continued (and even increased) marketing efforts. In fact, if you do a Google search for should I decrease marketing in a bad economy, you'll find plenty of results confirming that marketing should continue or increase during tough economic times.

Also read my blog highlighting some of the most important reasons why you should continue, and even increase, your marketing during a bad economy.

Anyone else finding 2025 incredibly tough? https://www.reddit.com/r/smallbusinessuk/comments/1mi3im8/anyone_else_finding_2025_incredibly_tough/
Does your 2025 projection look as scarce as mine? https://www.reddit.com/r/Homebuilding/comments/1ii0cj7/does_your_2025_projection_look_as_scarce_as_mine/
How Down is your Business in 2025? https://www.reddit.com/r/smallbusiness/comments/1nugdvl/how_down_is_your_business_in_2025/
Home improvement growth forecast dips https://hbsdealer.com/report-home-improvement-growth-forecast-dips
Housing and home improvement showing signs of struggling https://discussion.fool.com/t/housing-and-home-improvement-showing-signs-of-struggling/114014
1 in 4 small business owners in "survival mode" https://finance-commerce.com/2025/09/keybank-small-business-survey-2025/
Small businesses feel more uneasy ahead of the holidays after a year of slow sales and high costs https://www.wpr.org/news/small-businesses-uneasy-holidays-slow-sales-high-costs-harvest
Home Depot Cuts Forecast as Consumers Pull Back on Spending https://www.nytimes.com/2025/11/18/business/home-depot-downgrade-forecast.html
Slower Growth Projected for Remodeling into Next Year https://www.jchs.harvard.edu/blog/slower-growth-projected-remodeling-next-year
Sluggish Housing Starts and Uncertainty in the Broader Economy https://www.jchs.harvard.edu/blog/remodeling-expected-continue-slow-steady-growth-next-year
Why 2025 Is a Tougher Year for Small Businesses https://thebusinesslegacy.com/small-business-challenges-in-2025-and-how-to-overcome-them/
In 2025, Lowe's forecasts flat growth in sales. This reflects a continued downturn in the home improvement sector, as higher interest rates and economic uncertainties lead homeowners to defer renovation projects. https://www.reuters.com/business/retail-consumer/lowes-forecasts-annual-comparable-sales-largely-below-estimates-2025-02-26
In 2025, homeowners are cutting back on renovations due to high interest rates and tight budgets. While industry growth is projected at 5.3%, it's driven by price increases rather than demand. Many projects are being postponed, but a rebound is expected in late 2025, potentially leading to a surge in remodeling by 2026. https://www.cilio.io/2025/01/29/home-improvement-industry-forecast-2025-and-beyond/
After two years of decline, annual expenditures for improvements and maintenance to owner-occupied homes are expected to grow at a mild pace throughout 2025. https://www.jchs.harvard.edu/blog/modest-gains-2025-outlook-home-remodeling
In 2025, small businesses will face a mix of opportunities and challenges in the evolving economic landscape. Inflation and regulatory uncertainty remain key concerns for business owners nationwide. https://www.uschamber.com/co/events/small-business-update/small-business-update-january-2025
Consumers are holding off on remodeling due to general macroeconomic and political uncertainty. The tight market is straining home improvement companies. https://www.investopedia.com/tight-housing-market-holding-back-remodeling-business-lowes-home-depot-8748185
When a bad economy sets in, many organizations resort to "playing it safe" and scaling back or halting marketing initiatives. While this may be a "safe" move in the short term, it may be harder to recoup lost brand recognition when the economy turns. https://www.freshfinance.us/bad-economy-increase-your-marketing/
Construction backlog has stagnated as smaller contractors feel the brunt of the pain and builders' profit confidence hit nearly a two-year low. Contractor confidence regarding profit margins is low. https://www.constructiondive.com/news/construction-backlog-july-contractors/724134/
As far as economic climates go, 2024 has been fairly grim. The cost of living crisis, inflation and rumblings of a recession have been dominating the minds of consumers. Continuing brand investment through both good and bad economic times is critical for a business's commercial success. https://www.gotracksuit.com/blog/posts/marketing-in-a-recession-why-you-shouldnt-cut-brand-investment
Home improvement spending was on a steady incline from 2021 through 2023. Many people at home during COVID decided to take on improvement projects. Since then, it's been on a steady decline. Other factors continuing to drive home improvement spending downwards include steep costs and higher interest rates. https://www.forbes.com/home-improvement/features/home-improvement-spending-decrease-bottoms-out
One of the first budgets most businesses cut during a recession is marketing – and that's a huge mistake. Marketing is critical to help businesses survive economic downturns. Cutting your budget or pausing your efforts is the last thing you should do. https://forgeandsmith.com/blog/marketing-drives-growth-in-recession/
The residential remodeling market is on a decline. Homeowner spend on improvements and maintenance is expected to decrease in 2024 due to factors such as slowed post-pandemic growth, weak housing market, and low confidence in the economy. Even if your marketing campaigns aren't generating leads right now, keep running them. They raise brand awareness, which will be crucial when the time comes that people do need your services. https://www.usehatchapp.com/blog/remodeling-spend-decline

Look at that dip in remodeling spending in the charts below starting in 2023. In the first chart, the 2026 numbers are projected, showing that 2026 home improvement spending may continue to remain flat.

Leading Indicator of Home Remodeling Activity 20232 through 2026

Leading Indicator of Home Remodeling Activity 2022 through 2024

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