Home Depot is having big problems.

Home Depot just reported one of their biggest sales misses in years, with same-store sales dropping -3.6% YoY in Q2 2024. This is one of the biggest sales drops since the 2008-09 housing crash, and suggests that the US Economy and Housing Market is on fragile footing.

That's because Home Depot tends to be a leading indicator for the US economy. As construction slows and builders reduce housing starts, Home Depot's business suffers.

This is especially true in Florida. Where there is a lot of home building and where housing inventory and homes for sale have skyrocketed over the last year. The result is that big builders - like Lennar, DR Horton, and KB Homes - are starting to struggle. Meanwhile, smaller builders are struggling even more. Which means less trips to Home Depot.
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[ReventureConsulting]

Only 3 years where Home Depot's annual revenues have ever declined: 2009. 2010. and 2024.

Watch out for the decline in active housing units under construction, referenced at 1:50. This is starting to pick up steam and will lead to construction layoffs in the next 6 months.

[jerrycampbell-utyf]

Because so many people overpaid for homes during a period when interest rates were low, I believe there will be a housing crisis because these people are in debt. If housing prices continue to fall and, for whatever reason, they can no longer afford the house and it goes into foreclosure, they will have no equity because they will not make any money if they sell. I feel that many people will be affected by this, especially given the predicted mass layoffs and fast rising living costs.

[leondonald]

I'm in Michigan, and the housing market here over the past 7-8 years has been unprecedented. Houses that were purchased for $130K in 2015 are now going for $590K. These are tiny, poorly constructed 950-square-foot homes in quiet, mediocre neighborhoods. Meanwhile, nicer, average-sized homes in better neighborhoods that were over $300K a decade ago are now selling for $750K+. It's wild.

[DonaldMark-nese]

I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

[nicolasbenson]

I’m a new dad, I moved to the Bay Area a few years ago and I’m thinking of purchasing a single family home, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? I heard Nvidia and AMD are strong buys.

[douga]

This is all extremely simple, middle income, Americans making between 65 and 90, 000 a year cannot afford a $450, 000 house and an $85, 000 car. Not gonna happen!

[gingerkilkus]

People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Sure I'm not alone in my chain of thoughts.

[Markhamthcentury]

$40.00 per sheet of plywood is why this is happening.

[davidorellana]

Why do people say” pandemic savings “ we got like 2k while a lot of people couldn’t work and needed that money to eat, that money was gone during the pandemic, there never was “savings”

[Ray]

We also just found out that we’ve lost almost 1 million jobs and no new jobs in the last two years evening including part-time jobs. We are in huge trouble and they have been lying to us.

[ChloeCarter-kdgz]

I'm eagerly anticipating a potential housing crisis to make affordable purchases after selling some properties in 2025. I'm also thinking about investing in stocks as a backup plan. Any advice on the best timing for these investments? I've seen substantial trading profits, but there are worries about the market's instability and the possibility of a dead cat bounce. Can you explain why this market phenomenon happens?

[markr]

Shocking-- no one wants a 15$ quarter pounder or 11$ mcnuggets

[whitefearlytales]

Money is not meant to control people, rather it is meant to be put to work producing more money for you. You cannot build wealth without putting money in its rightful

[keithn]

I'm a contractor in Phoenix and go to various HD and Lowe's 3-4 times a week. They are BOTH way less busy than I've ever seen in 15+ years. Last week, I overheard some department clerks talking about their scheduled hours decreasing.

[Militantmind]

If a home builder is buying lumber from home depot they shouldn't be home building.

[bloodyblade]

YOU WILL OWN NOTHING AND BE HAPPY ! If that doesn't wake people up nothing will !

[teamground]

Reminds me when trying to sell our house in 2006. Started at 320, no movement. Blamed the realtor, who advised us to cut the price. We didn't listen, eventually cut to 310. Changed realtor, no movement. Rented it out, trying to ride things out. Tried selling again in 2010, lower prices. Finally sold in 2012 for 240. Kicked myself for not capitulating much earlier. Still gain on the house, but I was not operating in reality.

[Michael-uytz]

Many restaurants are struggling. Something is bad with the economy

[NoWay-uz]

I will not shop at Home Depot, McDonald’s, Starbucks, or Wal-Mart. Still protesting the gen o cide. We built our home OURSELVES, so we don’t need to flip anything.

[AirJordanDCH]

Labor Department overstated the amount of jobs we have created, over 800, 000 less jobs than reported nuts