Strategic Exchange: Inflation and housing struggles cut into flooring sales in the first half of the year – July 2026

By Kemp Harr

Halfway through the year, early estimates are telling us that the residential remodel segment of the flooring business is off almost 4%, so if you’re a retailer who is flat or even up, pat yourself on the back. 

Inflation and a sluggish housing market are the primary causes of this decline. Prior to the U.S. bombing of Iran in late February, gas prices were averaging just under $3.00 a gallon. In Q2, the national average climbed above $4.20 a gallon and peaked at $4.60 in May. Gas inflation hurts everyone but has an even greater impact on the buying patterns of people with less disposable income.

In terms of the mix, carpet is down more than hard surface. And when you look at the overall flooring business by segment, the single-family builder business could be down by as much as 6%, but multifamily is not down as much. Fortunately, the commercial market continues to grow and support the dealers with a diversified segment mix. 

It was encouraging to learn at press time that consumer sentiment was up 10.5% in June, but on a year-over-year basis, it’s still down 18.5%. On the commercial side, backlogs continue to generate demand for flooring. Unfortunately, the May Architecture Billings Index dipped down to 44.5 from 48.3 in April but the designers we talked to in Chicago said demand for design work was brisk. 

CHICAGO DESIGN WEEK

The verdict is in, and the dye has been cast that the Chicago A&D event held every year on the second week in June will no longer be called NeoCon. The weakness of the office market post-Covid helped fuel the belief among the execs at Vornado Realty Trust—which owns The Mart—that the shift to Fulton Market would be a short-term fad, and they’d all come back to The Mart once the experiment failed. 

Don’t get me wrong, the vibe at The Mart during Chicago Design Week is very healthy, and The Mart will continue to be a big part of the equation. But the vibe at Fulton Market has matured beyond the experimental stage. One can’t help but think that, for a while, the Vornado folks were thinking, “Just one big rainy week, and they’re done.” I smiled when I saw that Mannington Commercial was handing out umbrellas this year in its new Fulton Market showroom. 

While its only 1.1 miles from The Mart to Fulton Market, getting there and back can be a challenge. We discovered firsthand that luxury buses are a bust because of the route they take. It took us 45 minutes by bus. In light of this, many designers are carving out one day for each location. With The Mart now open on Sunday afternoon, many of the people we interviewed started at The Mart on Sunday, went to Fulton Market on Monday and then back to The Mart on Tuesday. 

Two of the biggest flooring brands, Shaw and Mohawk, have a presence at both locations—only one showroom, but brand building networking stations at the other location. 

NO FIBER EXHIBITORS—END OF AN ERA

One of my favorite stories from the early days of carpet branding came shortly after DuPont began promoting Antron nylon. A skeptical carpet mill executive reportedly remarked that branding carpet fiber made about as much sense as U.S. Steel branding the steel that goes into an automobile. To him, fiber was simply an ingredient. Consumers bought carpet, not nylon.

History proved otherwise. DuPont didn’t just create a better fiber, it created one of the industry’s first ingredient brands. Architects asked for Antron. Consumers looked for Stainmaster. Mills proudly displayed the logos because they added value to their products. For decades, the biggest names in fiber became some of the biggest marketers in flooring.

When Floor Focus launched in 1992, DuPont was our first advertiser. That wasn’t an accident. At the time, fiber companies were among the industry’s largest investors in innovation, education and marketing. They weren’t just selling nylon—they were helping shape the future of commercial flooring.

That is why walking NeoCon this year felt so different. For the first time since the era DuPont helped create, there wasn’t a major fiber producer exhibiting. Most attendees probably never noticed. Those of us who have covered this industry for decades couldn’t miss it. It wasn’t simply the absence of exhibitors. It was the quiet end of an era. n

For comments on this column, email kemp@floorfocus.com.