At Berkshire Hathaway's annual shareholder gathering on Friday, Benjamin Moore CEO Dan Calkins described a pullback in consumer spending on paint products tied to broader affordability pressures in the housing market and daily household budgets.
Calkins said a small rise in home remodeling activity has not been sufficient to offset weaker sales of existing homes. Existing home sales dropped 3.6% in March to a seasonally adjusted annual rate of 3.98 million homes, reaching a nine-month low, according to the figures cited at the event. Calkins linked part of that decline to geopolitical tensions in the Middle East that pushed up gas prices and reduced household purchasing power while inflation moved to a nearly three-year high.
Mortgage costs have also moved against the housing recovery. The average 30-year mortgage rate was 6.30% as of April 30, up from 6.15% at the end of 2025, according to Freddie Mac, a change that Calkins said has undermined affordability. "We were excited when interest rates were on a downslope, and then war broke out and they’ve sprung back up," he said. "There is a tremendous amount of pent-up demand for housing, but it’s an affordability issue because of mortgage rates, and housing prices are holding it back."
Benjamin Moore, a Berkshire Hathaway-owned business, distributes paint and related products in 76 countries through more than 8,500 paint, decorating and hardware retailers. The company operates through roughly 6,500 retailers in the United States and about 1,500 in Canada.
Calkins described a shift in buying patterns among consumers: "What we’re seeing on the ground is some customers who traditionally buy our more premium products are trading down" to mid-range offerings. He added: "They are spending more on gas and groceries."
The comments from Benjamin Moore's CEO frame a picture in which higher everyday costs and mortgage rates weigh on both housing transactions and discretionary spending for home improvement. While a degree of remodeling activity has returned, the combined effect of fewer existing-home transactions and increased household expense for essentials appears to be restraining paint demand and prompting consumers to choose lower-priced options.
Contextual note - Calkins delivered these observations during Berkshire Hathaway's annual shareholder event as he addressed trends affecting Benjamin Moore's retail footprint and customer behavior.