It’s inherent in flooring retailers’ DNA to project optimism even when conditions around them say otherwise. And so, as the second half begins, dealers encounter a landscape that is not much different than the first half— one beset by rising costs, a dormant housing market and affordability concerns. But the difference is they believe they can win in the third and fourth quarters.
“We’re cautiously optimistic about the second half of the year,” Aaron Johnson, president of Johnson & Sons Flooring in Knoxville, Tenn., told FCNews. “The biggest challenge heading into Q3 and Q4 is continuing to win over consumers who are delaying projects because of economic uncertainty and higher interest rates. That puts even more emphasis on creating a great customer experience and demonstrating value rather than competing strictly on price.”
If flooring dealers were expecting a break from the housing market woes in the second half, they might be disappointed. For the remainder of 2026, housing experts project 30-year fixed mortgage rates will hover in the mid-6% range, largely between 6.3% and 6.6%. This relatively steady projection comes after international conflicts and inflation shocks diminished expectations for significant rate drops this year. Affordability concerns is another pressing issue.
“There are so many factors impacting this [market],” said Phil Koufidakis, president of Baker Bros Area Rugs & Flooring, with six locations in the Phoenix market. “Should the prices of gas stay down and the Iranian situation find a resolution, I am anticipating a 10% bump in the second half of the year. We need price stability to make that happen.”
Koufidakis acknowledged the biggest challenges continue to be out of his control. “Rising costs and a very stagnant housing market make the residential remodel business a challenge,” he said. “With that said, this also creates an opportunity with many homeowners that have reached a point where they will not consider moving, which leads to remodeling. I think we start to get there either way in the second half of the year.”
Some dealers said they will turn to financing to try to stimulate activity in the second half. “Our biggest opportunity remains with financing and offering options for people to invest in their homes and pay over time without interest,” said Cathy Buchanan, owner of Independent Carpet One Floor & Home, Westland, Mich. “Synchrony is a big partner and we need to push this option to our customers whenever we have the chance. Hence the challenge of people living in fear and afraid to invest their money into the home. So why not use Synchrony’s financial strength and make their home the way they want to live in it?”
Johnson agreed that financing continues to play a major role in helping customers move forward with larger projects. “We are seeing demand remain strongest among customers who are remodeling rather than moving into new homes,” he noted. “While consumers are still being selective with discretionary spending, we’re seeing that homeowners are willing to invest when they see clear value. We believe customers are still willing to spend when they have confidence they are making the right investment, but it is definitely more difficult in this economic downturn.”
It’s an economic environment marked by ebbs and flows, of good months followed by soft months, with little consistency for most dealers. “Our outlook for the second half is hopeful but not expectant of great things,” said John Bretzloff, manager, Barefoot Flooring, Castle Hayne, N.C. “2026 has been good, but very sporadic—seemingly feast or famine. The biggest challenge is competing for the premium customers that are after top product selection and service. Information is everywhere and we work diligently to stay above the fray with targeted SEO and the most current offerings.”
Eric Langan, CEO of Carpetland USA, with nine locations in Iowa and Illinois, views the second half as more or less a carbon copy of the first half. “There is business out there for those who want to work for it and earn it,” he said. “The higher-end consumer continues to shop and purchase higher-end goods. The middle class is slower to buy, but we’re hopeful that changes during the second half of the year.”
Some flooring dealers say they have experienced positive sales in the first half that they hope to carry on the rest of the year. “We are looking into the second half of the year with great optimism,” explained Doug Schuitema, merchandise manager for DeGraaf Interiors in Jenison, Mich. “Our overall business has been good this year, and we look to build on that through strong promotion and best value of product offerings. We look to hopefully be up in sales vs. last year’s increase by double digits.”
Flooring dealers like Home Carpet One in Chicago is already there, registering 20%-plus growth in the first half on the strength of an expanding designer business. “In our view, the second half should be as strong—if not stronger—than the first half,” said Joel Schreier, president.
