Paint and Wallpaper Stores NAICS 444120

Jan 24, 2026 - Remodeler Sentiment Holds Solid

• The NAHB/Westlake Royal Remodeling Market Index (RMI) reading for the fourth quarter of 2025 was 64, up four points from the previous quarter, according to a January 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 fourth quarter, the Current Conditions Index portion of the RMI rose three points to 71 compared to Q3 2025. The Future Indicators Index component of the RMI increased by four points to 56. While aging US housing stock, strong homeowner equity, and the aging-in-place trend kept the RMI solidly in positive territory in Q4 2025, the NAHB noted that high building costs and waning consumer confidence continue to pose challenges to the remodeling industry.
• Sales of existing US homes increased by 5.1% in December from November and were up 1.4% year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Lawrence Yun said, "2025 was another tough year for homebuyers, marked by record-high home prices and historically low home sales. However, in the fourth quarter, conditions began improving, with lower mortgage rates and slower home price growth. December home sales, after adjusting for seasonal factors, were the strongest in nearly three years. The gains were broad-based, with all four major regions improving from the prior month." Existing home sales are a key demand driver for paint and wallpaper stores, as sellers typically refresh paint before putting homes on the market, and buyers often make renovations before moving in.

• Home builder confidence in the single-family market dropped in January amid continued affordability concerns and high construction costs, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), fell two points to 37 in January 2026. Any HMI reading over 50 indicates that more builders see conditions as good than poor. The high end of the single-family market is faring relatively well compared to the medium- and low-end, which are pressured by high home prices and mortgage rates. Down payments have become a particular sore spot among many potential buyers as home prices remain elevated. However, as of January 15, the average mortgage rate fell to 6.06%, marking the lowest rate in three years, according to Freddie Mac. The HMI survey also showed that 40% of builders reduced home prices in January, which marked the third consecutive month when the share of builders offering discounts was 40% or higher.
• Netherlands-based AkzoNobel, maker of Dulux paint, plans to merge with Philadelphia's Axalta Coating Systems in a $25 billion deal that will create one of the largest global coatings companies, according to Reuters. The combined group, expected to generate $17 billion in annual revenue and $600 million in cost savings, will focus heavily on coatings, which are more resilient in consumer downturns than decorative paints. For paint retailers, the merger signals intensified competition, streamlined product portfolios, and potential margin pressure as the new company leverages scale to cut costs and boost profitability. The deal positions the company to leverage retail channels, offering higher-margin products and greater efficiency. The consolidation underscores ongoing industry pressures from tariffs, rising costs, and shifts in demand.