Reupholstery and Furniture Repair NAICS 811420

Jan 23, 2026 - Furniture Demand Shifts with Reshaped Housing Market

• As US home sales level off entering 2026, conditions are becoming more supportive of reupholstery and furniture repair demand, according to a report in Furniture Today. Existing-home sales are projected to rise just 1.7% in 2026, with mortgage rates averaging about 6.3%, reinforcing a “stay-put” dynamic as homeowners avoid trading low-rate mortgages. With fewer full-home furnishing cycles, spending is shifting toward targeted upgrades, durability, and long-term value, favoring repair, refurbishment and room-by-room improvements. Strong home equity levels are being used conservatively, often to fund necessary improvements rather than cosmetic overhauls, supporting maintenance-focused services. Demographic trends also contribute: Millennials account for nearly 30% of buyers, and Gen X represents 24%, with multigenerational living increasing demand for adaptable, longer-lasting furniture. Overall, slower housing turnover and intentional reinvestment point to steadier, service-oriented opportunities for reupholstery and repair businesses.
• A new robotics startup, Kathedra, is developing AI-powered automation aimed at upholstery manufacturing, a move that could significantly affect the US reupholstery and furniture repair industry. Backed by a $235,000 pilot launched in September 2025 with a High Point manufacturer, the company targets “non-value-add” upholstery tasks to ease labor constraints rather than replace artisans. This is notable for an industry facing an aging workforce and persistent skilled labor shortages. Kathedra plans to pursue roughly 100 manufacturers in western North Carolina before expanding nationally across thousands of domestic upholstery producers, within a global upholstery market estimated at $180 billion. While established manufacturers note challenges, such as managing more than 1,100 fabrics, 2,800 SKUs, and frequent fabric turnover, the startup argues recent advances in AI and robotics now make high-mix, complex upholstery tasks more feasible. For reupholstery and repair businesses, these developments signal gradual efficiency gains, improved knowledge transfer, and reduced physical strain, while reinforcing the continued need for skilled craftsmanship in high-mix, custom work.

• Home remodeling spending, a demand driver for furniture repair and reupholstery, is expected to reach 2.4% growth in early 2026, continuing a modest and steady pace of growth, according to the Leading Indicator of Remodeling Activity (LIRA) by the Joint Center for Housing Studies. The latest reading forecasts $524 billion in renovation spending in the US in early 2026, a new record high, representing an upward trend in remodeling permit activity and single-family home sales. The growth is projected to soften to 1.9% in Q3 2026 due to headwinds from anticipated sluggish housing starts and economic uncertainty.
• According to the CNBC/NRF Retail Monitor, furniture and home furnishings stores lagged behind broader retail gains in December 2025. Core retail sales rose 1.6% month over month and 3.5% year over year, reflecting results in line with the NRF retail forecast. However, furniture and home furnishings stores posted a 0.33% monthly increase (seasonally adjusted) and a 0.82% annual decrease (unadjusted), making them one of several categories to contract. Building and garden supply stores fell 5.3% year over year, and electronics and appliance stores fell 0.09% year over year. In contrast, categories such as clothing (6.1% year over year), sporting goods, hobby, music, and book stores (5.1%), and digital products (3.6% year over year) saw strong growth The data, based on Affinity Solutions’ anonymized card transactions, highlights competitive pressures facing furniture retailers.