Home Spending Rises as Canadians Buy Local

Canadian consumers are redefining what home means and how much they’re willing to invest in it. Rising disposable incomes, shifting demographics and a renewed sense of national pride are fuelling a surge in spending on furniture, decor and appliances. For businesses in the home goods and furnishings sector, these changes present both challenges and opportunities.

According to Environics Analytics’ HouseholdSpend data, Canadians have spent more than $4 billion on home refresh projects in the past year. This growth is supported by an aggregate disposable income that now exceeds $50 billion nationwide. The average household allocates nearly $7,000 each year to home-related purchases, with home improvement leading the way at more than $4,000 per household. Furniture accounts for just over $1,000, while small appliances and decor combined represent close to an additional $1,000. Large appliances round out the category at approximately $400 per household.

Behind these numbers are distinct consumer segments with unique priorities. Older families and empty-nesters, often living in homes that were built decades ago, are investing in quality furnishings and durable decor. Middle-aged families are modernizing properties built after 1981, balancing style with practicality. Large, diverse households in suburban markets are driving demand for multigenerational living solutions and new home furnishings. Meanwhile, younger Canadians, many of them renters, are seeking affordable yet stylish options for decor and small appliances.

While spending is strong, value remains a critical factor. Additional behavioural and psychographic data provide deeper insights into these shoppers. Canadians are increasingly looking for competitive pricing, loyalty programs and flexible financing. At the same time, technology is shaping the shopping experience. More than half of consumers consult online reviews and product specifications before making a purchase, yet the majority still buy in-store. This underscores the importance of seamless omnichannel strategies that connect digital research with physical sales.

Perhaps the most compelling trend shaping the home goods market today is patriotic purchasing. This isn’t just a passing preference. It’s a cultural shift. Canadians are increasingly motivated by national pride, economic resilience and a desire to support local businesses. These values are influencing what they buy, where they shop and how they perceive brands.

Fifteen per cent of Canadians will choose Canadian-made products regardless of price, driven by a deep commitment to supporting domestic manufacturing and small businesses. Another 32 per cent identify as proud Canadians. They are consumers who may not always buy local but are open to shifting their habits when given compelling reasons, such as quality, sustainability or community impact. Meanwhile, 39 per cent fall into the average local shopper category, willing to purchase Canadian-made goods if they are cost-competitive.

This movement is particularly strong in regions like Atlantic Canada and the Prairies, where supporting local businesses is woven into community identity. In British Columbia and Ontario, environmental consciousness is an additional decision driver of the customer journey. By understanding these mindsets, retailers and manufacturers can build marketing that deeply connects with customer values and prioritizations.

This trend offers a clear opportunity for domestic manufacturers and dealers alike. Highlighting ‘Made in Canada’ claims on furniture, decor and appliances can resonate deeply with shoppers. Beyond labelling, storytelling matters. Sharing the origins of products, artisans behind them and local impact of each purchase creates an emotional connection that drives loyalty. Retailers can also amplify this message through in-store signage, digital campaigns and partnerships with Canadian suppliers.

Patriotic purchasing isn’t just about pride. It’s about trust. In an era of global uncertainty, consumers see buying Canadian as a way to strengthen the economy and preserve their nation. Aligning with these values can transform a transactional relationship into a lasting bond.

Michael Scida is vice-president of retail business development and Sophie Marai is vice-president of account management at Environics Analytics. They specifically used best-in-class data from HouseholdSpend, Opticks powered by Vividata, and SocialValues for this article, as well as the company’s segmentation system to identify key consumer groups. Environics Analytics is a premier marketing, information and analytical services company in Canada, helping thousands of customers across every industry sector turn data and analytics into strategy, insights and results. Michael and Sophie can be reached inquiries@environicsanalytics.com.