The National Association of Home Builders’ latest State Projections of Remodeling found no change in remodeling activity during the second quarter. This quarterly state-level report tracks spending trends, market distribution, and shifts in expenditure across all regions.
The second quarter saw a near-even split, with remodeling spending declining in 26 states and increasing in 24 states. The average growth rate across all states was 0.0%.
NAHB Chief Economist Robert Dietz said, “These flat results are consistent with NAHB’s forecast for remodeling spending in 2026.” He noted that second-quarter spending growth was concentrated in smaller states.
Among the 10 states with the largest market shares, only North Carolina and Illinois recorded growth. The SPR uses a proprietary NAHB statistical model to estimate quarterly remodeling spending and market share for each state.
Elliott Pike, NAHB Remodelers Chairman, said, “Rising construction costs and weak consumer sentiment are weighing on projects and keeping spending flat, but the remodeling sector has solid long-term growth potential.”
Remodeler confidence has held steady, with NAHB’s Remodeling Market Index remaining above 60 for the past year. The top states for remodeling spending in the second quarter included California, with a market share of 7.9% and a dollar volume of $21.4 billion.
Other top states for remodeling spending included Texas, Florida, New York, and North Carolina. States with the largest increases in remodeling spending included Michigan, Alabama, West Virginia, Virginia, and Alaska.
NAHB expects remodeling to grow in the years ahead, driven by rising home equity and an aging housing stock. At the start of 2025, there were 128,000 remodeling firms, up from 69,000 in 2000.
The number of remodeling firms has increased significantly over the years. Robert Dietz and Elliott Pike both agree that the remodeling sector has a positive outlook. They believe that the sector’s growth potential is solid, despite current challenges.
The remodeling sector’s long-term growth potential is supported by rising home equity and an aging housing stock. As the housing stock continues to age, the demand for remodeling services is likely to increase. This trend is expected to drive growth in the remodeling sector in the years ahead.
