The New Economics of Home Décor: Adapting in a Time of Change

The home décor industry is navigating a shifting economic landscape marked by inflation, tariffs, and changing consumer behavior. As of July 2025, U.S. inflation has crept up again, with new tariffs on imported goods like furniture and lighting adding pressure to retailers’ margins. Brands such as At Home have already filed for bankruptcy amid rising costs and reduced consumer spending. These financial headwinds are forcing both large and small businesses to rethink pricing, sourcing, and how they connect with buyers.

Cost structures are also evolving as global supply chains remain unstable. The price of materials like wood has seen sharp fluctuations in the last year, driven by both climate impacts on forestry and shifting international trade policies. Many U.S. manufacturers are now turning to alternative wood sources in Latin America or Southeast Asia to stabilize costs, while others are reducing waste by using finger-jointed pine and engineered wood products. This shift affects everything from pricing to product quality and has made supplier relationships more critical than ever... Hammer And Nails Studios will not bend to these compromises.

For businesses and creatives in the home décor space, success in the new economy depends on being nimble. Our custom-order consumers want their purchases to feel intentional, smart, and stylish. Brands that adapt to these new expectations—while uncompromising on quality, adjusting US based sourcing, and customer focused pricing models—will not only survive the moment, but help define the next chapter in American home design.