Join Simon/Myers’ Head of Strategy, Brian Gee, as he dives into four articles to help your team stay ahead of the curve in 2025.

#1: How High Mortgage Rates Are Reshaping Long-Term Renovation Demand

In a recent article for Realtor.com, Kiri Blakeley highlights a 2025 trend that’s proving to be more resilient than expected in home improvement demand: as mortgage rates remain high—hovering around 7%—homeowners are showing signs of moving forward with their delayed remodels versus trying to find their next home. According to their latest earnings call, Home Depot projects a 2.8% sales increase in 2025, with consumers beginning to tap into record-high home equity for renovations. This comes at a time when many anticipated affordability challenges, tariffs, and supply chain concerns hold the potential of slowing the industry down. Instead, the reality is proving more nuanced.

Aging housing stock, rising incomes, and an increasingly locked-in mortgage market are fueling the start of long-term renovation projects. Meanwhile, extreme weather is driving regional spikes in repair-related projects, and digital sales continue to grow—up 9% for Home Depot last quarter. The professional market is also expanding, with contractors and builders leading growth in roofing, drywall, and power tools. This signals an important shift for marketers: while many have focused on short-term home improvement trends, the real opportunity may lie in positioning products for homeowners making long-term investments in their spaces. More here: (Source)

The Takeaway

For marketers, this shift presents clear opportunities to refine messaging and channel strategies. Homeowners aren’t just making cosmetic upgrades—they’re making structural, long-term investments in their properties. Brands should align with this shift in the following ways:

• Target Renovation Over Relocation: Messaging should focus on upgrading existing spaces, with an emphasis on durability, ROI, and aging-in-place solutions.
• Expand Contractor & Trade Outreach: With pros driving more sales, brands should consider B2B partnerships, trade-focused marketing, and volume pricing strategies.
• Capitalize on Digital Growth: With Home Depot’s digital sales up 9%, brands should optimize e-commerce, invest in digital advertising, and enhance online purchasing experiences.
• Monitor Regional Demand Spikes: Extreme weather events are driving localized repair surges—marketers should tailor campaigns and inventory strategies accordingly.

#2: Lowe’s is Bringing AI to the DIY

In a recent article, Trend Hunter’s Laura McQuarrie highlights Lowe’s launch of Mylow, an AI-powered virtual advisor designed to provide real-time support for home improvement projects. Developed in collaboration with OpenAI, Mylow offers instant answers to customer queries, from product recommendations to DIY guidance. Available exclusively to MyLowe’s Rewards members, the tool represents a major step in AI-driven customer engagement for the home improvement sector.

The introduction of Mylow signals a broader trend: AI-powered tools are reshaping how retailers connect with consumers. By delivering instant, expert-backed advice, Lowe’s is positioning itself as a leader in personalized, real-time customer support. As home improvement retailers compete for consumer attention, AI-driven assistance could be the next major differentiator in both online and in-store experiences. More here: (Source)

The Takeaway

Marketers should pay close attention to how AI-driven DIY customer support is evolving within home improvement and retail. This shift presents new opportunities to enhance consumer engagement, streamline the path to purchase, and create more seamless omnichannel experiences. For brand marketers, consider how you might:

• Leverage AI for Personalization: AI-powered tools like Mylow can help brands offer hyper-relevant product recommendations and DIY guidance tailored to individual customers.
• Integrate AI Across Channels: Lowe’s move suggests that AI-driven support will become an expectation—brands should explore chatbots, voice assistants, and interactive customer service enhancements.
• Create Exclusive Digital Experiences: By tying Mylow to its loyalty program, Lowe’s is driving both digital engagement and customer retention. Consider how you might integrate AI into your support structures as a tool for membership-based perks.

#3: Are Pro Reputation Issues Threatening Consumer Trust?

A recent survey from Leaf Home and Morning Consult highlights a growing trust gap in the home improvement industry, with nearly 70% of homeowners concerned about unreliable contractors. Cost discussions, job completion, and final assessments are the biggest trust pain points, leading many to rely on word-of-mouth recommendations over third-party platforms.

This distrust has also fueled a rise in DIY projects, particularly among younger homeowners, despite safety concerns. Meanwhile, demand for fixer-uppers is growing, signaling an opportunity for home improvement brands to position themselves as trusted partners in renovation. More here: (Source)

The Takeaway

Home improvement marketers know how important the pro is to their business, but helping pros address consumer trust concerns may be a unique way brands can help the pro grow their business. Strategies might include showcasing real customer testimonials alongside featured pro work, improving direct engagement to build reputation, and offering guidance to DIYers who may eventually need professional help. Brands that lean into trust-building on behalf of the pro will have an edge in 2025.

#4: Banks and Fintechs Bet on Home Renovation Boom with New Lending Innovations

As high mortgage rates keep homeowners in place, financial institutions and fintechs are expanding home renovation financing. Momnt’s extended loan options help contractors close larger deals, VersaBank’s partnership with Watercress Financial brings more lending infrastructure to the U.S. market, and Houzz’s integration with Figure streamlines HELOC access for homeowners. These moves signal strong confidence in continued remodeling demand—where banks invest, consumer activity often follows.

More here: (Source 1; Source 2; Source 3)

The Takeaway

With financing becoming more accessible, home improvement brands should prepare for increased renovation activity. Messaging should emphasize affordability and long-term value, brands should explore embedding financing options into the customer journey, and contractors should be a key target as they gain more opportunities to take on larger projects. As financial institutions drive innovation, the home improvement sector must adapt to capture growing demand.