It’s a small-project summer, according to Home Depot

Americans may not be remodeling the kitchen, but that crooked cabinet door has officially run out of excuses, per Home Depot’s latest earnings report.

The retailer nailed its most recent quarter, reporting a 5.7% annual increase in Q2 sales that came in ahead of Wall Street’s expectations while also beating analysts predictions for earnings.

Numbers get bigger as home projects get smaller

Home Depot found the number of smaller projects undertaken last quarter rose 1.5% from a year earlier, while bigger-ticket projects fell 2.1%. Customers are also spending more when they visit, with the average transaction rising 2.8% year-over-year to $92.50, even as total transactions declined slightly.

Big picture: The shift toward smaller projects comes as buying, selling, and significantly renovating a home remain out of reach for many Americans. Existing-home sales fell 1.7% in July to an annualized 4.06 million, close to the lowest monthly figure seen this century (3.85 million in Oct. 2023). Meanwhile, the average 30-year fixed mortgage rate stands at ~6.67%—roughly unchanged from a year ago, but far higher than the 3%-4% range seen earlier this decade.