Holiday Budgets Reflect Economic Anxiety, According to Rocket Survey

Are Americans pulling back on holiday cheer? A new survey from Rocket Mortgage and Redfin finds that more than a quarter of Americans are spending less on holiday decorations and gifts this year—a revealing snapshot of how household finances are adapting in an uncertain economy.

More Than a Quarter Reduce Spending on Decorations and Gifts

According to the survey, 28% of respondents say they're cutting back on spending for holiday décor compared to last year, and 26% are doing the same for gifts. The key drivers? Among those trimming décor budgets, 56% say it’s because they’re saving money, while 44% cite economic uncertainty. Only 16% of Americans are spending more on decorations, and 18% more on gifts, underscoring a broader mood of financial caution.

Financial Constraints and Economic Uncertainty Top the List

Most people say the cutbacks are less about lacking holiday spirit, and more about pragmatic financial decisions. Aside from cost savings and uncertainty, 42% report already having enough decorations, while smaller shares point to not hosting celebrations or feeling less festive. Notably, Chief Economist Daryl Fairweather from Redfin observes, "People are worried about earning less money while costs go up. Americans are keeping their wallets close not because they don't want to celebrate, but because they're being sensible."

Some Still Splurge—Especially Millennials and Parents

The data also reveal pockets of resilience—and even extravagance. Among those who do buy decorations or gifts, roughly one-quarter are spending as much on these seasonal items as they are on their monthly rent or mortgage. Notably, 19% of millennials and 17% of households with children are spending more on gifts than on their monthly housing payments. For millennials, 15% admit to outspending their housing budget on decorations. This signals the continued importance of tradition and family experiences, despite budget constraints.

Most Holiday Budgets Stay Under $500, With Many Capping Decor Under $100

Even as some Americans splurge, most are staying frugal. The majority (73%) are spending under $100 on holiday décor, while 41% will spend between $100 and $500 on gifts. Just over one in five (22%) spend more than $100 but less than $500 on decorations. The trend points to a growing emphasis on thoughtful, restrained celebration rather than lavish display.

Social Media and Impulse Play a Role—Especially for Younger Generations

Why are people spending at all? Nearly half decorate to celebrate the season (48%), while others cite a desire for a festive home. For about 9%, showing off décor on social media is a motivator, rising to 14% among millennials. Gen Z, raised on one-click shopping and influencer trends, is notably impulsive: 31% of Gen Zers admit to buying decorations on a whim, far outpacing older generations.

Takeaway: Signs Point to Softer Consumer Spending Ahead

The holiday spending shift reflected in this Rocket Mortgage and Redfin survey could be a sign of what’s to come. As cost-consciousness sets in, consumers are not abandoning celebration but are weighing their purchases more carefully—a sentiment that could ripple through other categories into the new year. Investors, retailers, and policy-watchers may want to keep an eye on these evolving priorities, as household caution today may mean softer demand—and perhaps greater focus on value—in the coming quarters.

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