Bedding executives are united in saying that lower interest rates would be a key driver of business this year.
Those lower rates would give a boost to the housing market, which the execs say is traditionally a strong growth engine for mattress sales. A healthy housing market means more new homes and more sales of existing homes, both of which open up new bedrooms for mattresses.
A Bedding News Now survey of industry leaders found widespread agreement that lower interest rates would spur mattress sales. That would be a welcome development for an industry that has seen domestic mattress shipments drop by about 27% since 2021, according to the International Sleep Products Association.
Like the mattress market, the housing market has also been in a slump in recent years. Housing starts fell 14% from 2021 to 2024. Existing home sales have seen an even sharper decline, dropping 34% in that same time period.
Bedding executives are optimistic that a change in fortunes for the housing market will logically lead to a change in fortunes for the mattress market.
“The most obvious key to growth in 2026 is the potential to boost the housing market with lower interest rates, which would be a key growth driver for the mattress industry,” said Bill Hammer, president of Shifman.
But that growth might not be shared across all consumer groups, he cautioned.
“What some are calling the ‘K-shaped market’ suggests that while the higher-income households will have greater spending confidence, the mid- to lower-income families will delay or postpone big-ticket items in 2026,” Hammer observed. “It’s a good time for retailers to focus on their luxury category so that they can sell more to the people already coming into their stores.”
Many bedding leaders believe that lower interest rates are on the way and that good days lie ahead for the mattress industry.
“New housing starts and attractive interest rates are always keys to growth in the home furnishings and mattress industries,” said Gerry Borreggine, CEO of Therapedic Worldwide. “Housing starts are slightly up, and that’s a good sign. And we keep hearing that the Fed will lower the prime rate. That doesn’t automatically lower interest rates, but it’s a precursor for that to happen.”
Mike Juoni, vice president of sales for specialty bedding at FXI, said he thinks lower interest rates will be coming this year.
“I see continuing pressure to get rates down and to free up the housing market,” he said. “Every industry will benefit when the housing market moves. I expect 2026 to be a growth year for the mattress industry, based on what will happen in the second half of the year.”
“Interest rates need to go lower,” said Joe DiCello, vice president of sales for DeLandis. “That will let younger folks buy homes. And that will provide opportunities for new homebuyers to buy mattresses and furniture.”
Lou Paige, CEO of Englander, said he’s heard estimates that growth in the housing market is responsible for one-quarter of the growth in the mattress market, and he believes an improving housing market will spur improved mattress sales this year.
The key to that housing pickup will be lower interest rates, and he sees that in the forecast.
“I think interest rates will come down,” Paige said. “I think that will happen gradually, and that will give consumers more optimism. A lot of young people are looking to buy homes.”
Kurt Ling, cofounder of Post+Lavish, is also optimistic that interest rates will be coming down, thus spurring a stronger housing market and giving a boost to the mattress category.
“I keep hearing people talking about interest rates coming down,” he said. “I certainly hope so.”
