Home Depot CFO Warns of Historic Low Housing Turnover Amid Frozen U.S. Market
Home Depot’s Chief Financial Officer, Richard McPhail, has raised concerns about the prolonged stagnation in the U.S. housing market during an earnings call with CNBC. He highlighted that housing turnover—the percentage of homes changing hands—has reached a historic low and remained at these levels for four years. Typically, when this metric drops to around 3% of total housing stock, it rebounds quickly; however, current data shows only 2.8% of U.S. homes changed hands in the first nine months of 2025, according to Redfin. The freeze is attributed to high mortgage rates and home prices that discourage buyers from entering or sellers from exiting the market. This lock-in effect was previously noted by former Federal Reserve Chair Jerome Powell in September 2024 but has persisted into late 2026. The impact on Home Depot’s business includes reduced demand for large, discretionary renovation projects while smaller repair and maintenance purchases remain steady. McPhail warned that the prolonged freeze could leave homeowners with significant equity trapped in their homes without viable exit strategies. This situation may also strain related industries such as construction and home services, affecting jobs and broader economic activity.
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Topics: CFO commentary Home Depot earnings call Housing market Low housing turnover