Household Appliance Manufacturers NAICS 3352

May 23, 2025 - Single-Family Housing Starts Decline

• The number of building permits issued for single-family, privately-owned housing units, a demand driver for interior design services, decreased 5.1% in April 2025 compared to March and fell 6.2% year-over-year. Single-family housing starts dropped by 1.6% month-over-month and were down 12% compared to April 2024. Single-family housing completions declined 5.9% in April from the previous month and decreased 12.3% year-over-year. Housing starts in April were pressured by tariff-related economic uncertainty, high mortgage rates, and rising costs for building materials, according to the National Association of Home Builders (NAHB).
• The Trump administration’s trade policies have created uncertainties for appliance manufacturers and their customers, including consumers, retailers, and builders. On April 9, the Trump administration paused its reciprocal tariff agenda for 90 days for most countries but left in place a baseline 10% import duty on all countries except China, which faced total tariffs of 145%. Canada and Mexico are not subject to the 10% baseline tariffs, and goods trading under the US-Mexico-Canada Agreement (USMCA) will remain duty-free. On May 12, 2025, the US and China declared a 90-day reduction in the tariffs each country imposes on the other amid further negotiations. The US tariff on imports from China was reduced from 145% to 30%, while China dropped its duty on US imports from 125% to 10%. A 25% levy on all US steel and aluminum imports imposed on March 12 is still in effect. Three-quarters of US consumers are concerned that tariffs will increase the cost of living. Tariffs could not only increase costs for imported appliances but also push up costs of US-made products that contain large amounts of imported steel and/or aluminum, such as refrigerators, washing machines, and dryers.

• Sales of existing US homes decreased by 0.5% in April from March and were down 2% year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Lawrence Yun said, "Home sales have been at 75% of normal or pre-pandemic activity for the past three years, even with seven million jobs added to the economy. Pent-up housing demand continues to grow, though not realized. Any meaningful decline in mortgage rates will help release this demand." Existing home sales are a key demand driver for household appliances as sellers make upgrades prior to putting homes on the market, and buyers often update appliances before moving in.
• Home remodeling spending is expected to see slight gains through 2026 after two years of weakening expenditures, according to the Leading Indicator of Remodeling Activity (LIRA) report released in April by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to increase 0.8% to $505 billion in the second quarter of 2025 compared to Q2 2024. In the third quarter of 2025, remodeling spending will rise to $506 billion, up 1.4% from Q3 2024. Spending will then increase to $512 billion in Q4 2025, up 1.8% from Q4 2024. In the first quarter of 2026, year-over-year spending is forecast to rise 2.8% to a record $526 billion. Joint Center expects improvements to be supported by increasing home values, a steady labor market, and gradually improving existing home sales. However, uncertainty stemming from trade strife and waning consumer confidence could put downward pressure on remodeling demand.