Paint and Wallpaper Stores

The 1,400 firms in the US sell paint, wallpaper, and related supplies to consumers and commercial contractors. Major product categories include architectural paint; painting equipment; coatings; painting supplies; and wallpaper.

Seasonal Fluctuations in Demand

The paint market is seasonal and subject to uneven demand throughout the year.

Sensitivity to Remodeling, Construction, and Economic Trends

Demand for architectural paint and wallpaper is dependent on the health of the remodeling and construction industry, which is cyclical and influenced by economic conditions.

Jul 27, 2026 - Remodeling Index Remains Positive

• The NAHB/Westlake Royal Remodeling Market Index (RMI) reading for the second quarter of 2026 was 61, down one point from the first quarter, according to a July 2026 report by the National Association of Home Builders (NAHB). Any RMI reading over 50 indicates that most remodelers feel market conditions are good. In the second quarter, the Current Conditions Index portion of the RMI remained unchanged at 70 compared to Q1 2026. The Future Indicators Index component of the RMI declined by two points to 52. The NAHB noted that the lock-in effect of high mortgage rates may incentivize existing homeowners to renovate rather than move, but that inflation may prompt some projects to be postponed, especially larger ones.
• The New York Times reports that the 21st Century ROAD to Housing Act is the largest federal housing measure in a generation, but it is unlikely to ease high rents and home prices soon. The law encourages local governments to allow denser housing and faster permitting, streamlines some affordable housing rules, protects new build-to-rent developments from investor restrictions, and removes a costly chassis requirement for manufactured homes. It also directs HUD to study changes that could expand modular construction. These provisions could support the US residential construction market by lowering factory-built housing costs, encouraging the development of new rental communities, and reducing local barriers to development. However, cities and states still control most zoning and land-use rules, while interest rates shape mortgage affordability. With little new funding and housing projects requiring years to complete, the law's effects are expected to emerge gradually.
• US housing starts rose 19% month-over-month and increased 3.5% year-over-year in June, according to the US Census Bureau. The rise in starts was led by a 76.3% increase in multifamily project starts involving five or more units, a segment of the residential construction sector that can be volatile month-to-month. Multifamily starts were up 19.3% compared to June 2025. Single-family starts in June were down 0.2% from May and 3.2% compared to a year earlier. High mortgage rates and a glut of unsold new homes continue to put downward pressure on single-family building. High costs for land and materials are also hindering building activity. Building permits for single-family slipped 2.4% in June from May, marking the lowest level in 10 months. June's multifamily permits dropped 4.9% from the month before.
• Home builder confidence in the single-family market fell in July as builders remain concerned about housing affordability, higher construction costs, and elevated interest rates, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), dropped two points to 34 in July 2026. Any HMI reading over 50 indicates that more builders see conditions as good than poor. July marked the 15th consecutive month the HMI remained below 40, a level not seen since the housing crisis in 2012. The survey also showed that 36% of builders reduced home prices in July to lure potential buyers off the sidelines, although the average price reduction of 6% remained unchanged from June. While the NAHB noted that the recent enactment of the 21st Century ROAD to Housing Act is a positive step in expanding the US housing supply, it added that more reforms are needed at the state and local levels.

Industry size & Structure

The average paint and wallpaper retailing company employs less than 24 workers and generates $12 million annually.

• The paint and wallpaper retailing industry consists of about 1,400 firms that employ about 33,500 workers and generate about $16.3 billion annually.
• The large paint and coatings manufacturers, such as Sherwin-Williams, PPG, and Benjamin Moore, dominate the paint and wallpaper retail landscape through company-owned locations. Sherwin-Williams is also one of the largest distributors of wallpaper in the US.
• About 36% of firms generate less than $500,000 annually; 25% generate between $500,000 and $1 million annually.
• About 79% of firms employ fewer than ten workers.
• Franchises account for a small (about 2.5%) of the industry.