Kleber & Associates

Mid-year 2026 Report: the market hasn't stalled. It has shifted toward the brands ready to meet it.

Mortgage rates have eased. The NAR Affordability Index has climbed to 110.6, up from 101.4 a year ago. And demand continues — just in more selective, regional and Pro-driven ways than the last cycle.

For building product brands, that opens real opportunity.

The Pro channel is a bright spot. The Home Depot and Lowe's are both leaning further in, and acquisitions like SRS Distribution and GMS reinforce a deliberate move toward specialty distribution and project-driven demand.

The stay-put homeowner is investing in the home they already own. Rate-locked and equity-rich, they are upgrading kitchens, baths, roofs and outdoor living — every project an opportunity for brands tied to durability, comfort and ROI.

Digital is becoming a workflow advantage. Lowe's Mylow AI now handles more than a million customer inquiries a month, with conversion roughly 3x that of shoppers who don't use it. The Home Depot has rolled out an AI-powered Material List Builder for Pros. The brands making the next step easier are winning trust at the moment of decision.

And the market is becoming more local. The Midwest and Northeast are showing strength. Custom home building remains resilient. Segmentation is no longer a marketing exercise — it's a growth strategy.

The brands gaining traction in this market are investing more precisely. Showing up with clarity. With confidence. With something useful to say.

Mid-Year Economic Report: The Market Has Shifted Demand continues. Not everywhere, or evenly. And not in the form we grew accustomed to during the last cycle.