In May 2026, sales of building materials and home furnishing stores above designated size across the country recorded 128.694 billion yuan, a sharp increase of 15.07% month-on-month and a year-on-year increase of 2.86%.
This strong rebound ended the downturn in the previous months, but the cumulative sales from January to May were 548.496 billion yuan, still down 4.01% year-on-year, revealing the complex picture of the market between short-term boom and long-term pressure.
The China Building Materials Circulation Association pointed out that the growth is the result of the superposition of three major driving forces: the May Day Golden Week consumption boom, the release of rigid demand during the traditional wedding decoration peak season, and the centralized implementation of home trade-in subsidies in various places.
However, the deeper driving force is shifting from the new housing market to the renovation of existing housing stock, and the structural differentiation of the industry has begun.
Data interpretation: BHI recovery and moderate market growth
The national building materials and home furnishing prosperity index (BHI) was 129.68 points in May, an increase of 13.60 points month-on-month and a year-on-year increase of 3.96 points.
As a market thermometer, the rebound of BHI confirms the steady growth of terminal consumer demand.
Among them, the “popularity index” surged 55.67 points month-on-month to 213.23 points, ranking first among all sub-indexes.
This directly reflects that during the May Day holiday, the promotional activities of major stores and local subsidy policies greatly stimulated residents’ willingness to shop in stores, and terminal passenger flow increased significantly.
The Industry Research Department of China Building Materials Circulation Association interpreted that the rebound of BHI in this period is the result of the superposition of multiple positive factors.
Although sales have surged month-on-month, the absolute value of the “Managers’ Confidence Index” is 56.30 (above 50 means optimistic about the market outlook). Although it has fallen back in the short-term month-on-month, it is still in a relatively high prosperity range.
This shows that industry practitioners’ confidence in the growth of the mid- to long-term market, especially the stock transformation track, has not been shaken.
Three major growth drivers: holidays, weddings and policy subsidies
– May Day consumption boom: Holidays have become a catalyst for offline consumption.
More than ten provinces and cities, including Shanghai, Chongqing, Anhui, Jiangsu, and Fujian, simultaneously launched special expanded subsidies for smart homes, kitchen appliances, and aging-friendly homes in May. This combined with store promotions directly boosted popularity and transactions.
– The urgent need for wedding decoration is released: May is the traditional peak season for weddings, which has driven the demand for wedding room decoration.
Market research shows that when consumers customize their home furnishings, their core demands are highly focused on “whether the quotation is transparent without additional items” and “the environmental protection level of the panels.”
– Trade-in subsidies take effect in a centralized manner: Local subsidy policies entered a period of intensive implementation in May, and are characterized by differentiation and convenience.
For example:
-Xinjiang launched smart home renewal subsidies on June 3, covering ten major categories of products such as sweeping robots and smart door locks. The subsidy rate is 15% of the transaction price, and the subsidy limit for a single product is 1,500 yuan.
– Dalian has added subsidies for five categories of products, including smart security doors and smart massage chairs. Products are required to meet Level 1 energy efficiency or water efficiency standards, and the subsidy is also 15%.
– Shanghai, Zhuhai and other places have expanded the scope of subsidies to include whole-house smart products, aging-friendly respiratory medical devices, etc.
Stock transformation: the core growth pole of market structural transformation
The underlying logic driving market growth is undergoing fundamental changes.
The second-hand housing market continues to be hotter than the same period in previous years. Its high transaction volume has driven a concentrated release of demand for overall renovation of existing housing, partial renovation of kitchens and bathrooms, aging-friendly renovation, and whole-house quality upgrades.
Coupled with the implementation and empowerment of the policies of the “15th Five-Year Plan for Urban Renewal”, projects such as the renovation of old communities and the quality improvement of urban villages have been fully promoted. The existing renovation market has officially become the most stable and core growth pole in the building materials and home furnishing industry.
This trend effectively offsets the downward pressure on demand for traditional building materials caused by weak new home construction and supports the overall resilient operation of the industry.
From an industrial perspective, urban renewal and renovation of old buildings have boosted segmented manufacturing industries such as energy-saving doors and windows, waterproof pipes, prefabricated home decoration components, and environmentally friendly coatings, making them more prosperous and more resilient.
Industry differentiation: Traditional pressure and the rise of segmented tracks
The market recovery is not inclusive, and the structural differentiation within the industry is highlighted.
– Traditional manufacturing industries such as non-metallic mineral products, building materials, and home accessories related to the real estate chain are experiencing weak business and weak demand.
– The manufacturing of subdivided categories driven by urban renewal and stock renovation continues to enjoy high prosperity.
Policy expectations further strengthen this divide.
The “Fifteenth Five-Year Plan for Urban Renewal” is expected to drive an investment scale of at least 15 trillion yuan, pushing the demand for building materials to extend from bulk commodities such as cement and sand to hundreds of subdivided fields such as waterproofing materials, insulation materials, and new wall materials.
New trends in consumption: transparency, health and intelligence
Based on feedback from market terminals, consumer demand is upgrading in a more rational and quality-oriented direction.
– Transparent consumption has become a hard demand.
Consumers are highly concerned about “whether the quotation is transparent and has no additional items” and “whether the contract clearly states the total price cap”. Brands that can provide “closed contracts with zero additional items” services are more popular.
– Health and environmental protection standards have changed from optional to mandatory.
The environmental protection grade of the board (such as ENF grade) and the formaldehyde-free characteristics of the coating have become key decision-making factors.
– The demand for smart and aging-friendly products has surged.
Smart door locks, smart toilets, age-appropriate walking aids, etc., driven by the dual promotion of subsidy policies and deepening aging, have become hot spots for family renewal.
Outlook: Deeply cultivate existing stocks and expand overseas dual circulation
Faced with the differentiated pattern, the China Building Materials Circulation Association recommends that companies should accurately grasp the “15th Five-Year Plan for Urban Renewal”, old-for-new policy dividends and other policy dividends, and deeply explore core incremental markets such as urban renewal, renovation of old communities, second-hand house renovation and aging-friendly renovation.
At the same time, we actively expand into overseas emerging building materials and home furnishing markets in Southeast Asia, the Middle East, Russia, etc., rely on internal and external dual cycles to broaden our growth base, and continue to polish product quality and service systems amid the deep differentiation of the industry.
The sharp month-on-month increase in May is a signal that as the traditional growth engine shifts gears, a new cycle driven by stock transformation and consumption upgrade is beginning.
