Record-high home prices, combined with the average 30-year fixed mortgage rate surpassing 7% once again, continue to create the worst housing affordability environment in a generation. Consequently, the residential renovation market sours, pressuring home furnishing companies to offer better deals. 

A team of Goldman analysts led by Kate McShane updated their proprietary home furnishings promotional tracker for November, in which they found increased promotions, markdowns, and free shipping across the industry for notable home furnishings retailers including Arhaus, At Home, Bassett Furniture, Cost Plus World Market, Crate & Barrel, Ethan Allen Interiors, Havertys, Kirkland's, Pottery Barn, PB Teen, Pottery Barn Kids, Rejuvenation, Wayfair, and West Elm.

McShane noted that average markdowns were slightly higher for the industry year-over-year last month, although Williams-Sonoma was one of the only home furnishings retailers not offering increased deals to somewhat flattish compared with the same month last year. 

Here are the key observations from their findings:

Industry-wide, markdowns increased month-over-month and year-over-year, with PB Kids and Wayfair offering the best deals. 

McShane noted, "While we don't include RH in our promotional analysis, we do note the company continues to advertise its fall clearance sale with up to 60% off outdoor, living, dining, and bedroom items." 

Average Markdowns on a retailer basis:

Pottery Barn 

West Elm

Williams-Sonoma

Rejuvenation

The number of days home furnishings companies offered 'free shipping' last month surged. 

Williams-Sonoma's free shipping promotion was much higher than the industry average. 

The entire industry has been in the dumps since the Covid spike.

And this is why.

McShane highlighted that the barometer for the residential renovation market remains uninspiring. 

Given all this, there are indeed deals for patient consumers who held back during the Covid surge in home renovations. Goldman's McShane gives readers a broad understanding of what home furnishings companies offer the best deals.