Americans Dial Back Holiday Spending Amid Economic Uncertainty

As the holiday season winds up, a new national survey suggests that Americans are approaching their celebrations with noticeably lighter wallets. According to findings from Rocket Mortgage and Redfin, conducted by Ipsos, nearly one-third of U.S. residents say they spent less on holiday décor this year than in 2024 — a shift many tie directly to financial pressures.

Economic Jitters Shape Seasonal Choices

Of the 1,005 Americans surveyed, 44% cited ongoing economic uncertainty as their biggest reason for scaling back seasonal spending. Whether concerned about inflation, rising costs of living, or the general direction of the economy, shoppers appear to be navigating the season with more caution. Another 56% say they’re simply trying to save money where they can, reinforcing a broader trend toward restraint.

Scaling Back Without Skipping the Joy

While many consumers dialed down on holiday purchases — from outdoor lights to stocking stuffers — they still want to capture the spirit of the season. The survey found that even as people buy fewer decorations and fewer gifts, they continue to share festive moments on social media. And for families, spending isn’t disappearing entirely: those with children anticipate spending more on gifts than those without, prioritizing meaningful experiences for younger generations.

What Shoppers Are Buying Instead

Gift cards remain the runaway favorite, especially among Gen Z, who prefer flexibility as the go-to present. When it comes to budgets, most shoppers aim to stay between $1 and $100 on decorations and between $100 and $500 on gifts — signaling a holiday season that is more intentional, more personal, and more mindful.

As expected economic challenges linger into the new year, Americans appear to be embracing simpler, budget-friendly ways to celebrate while keeping the traditions that matter most.