California, Texas and Florida continued to dominate the U.S. remodeling market during the first quarter of 2026, collectively accounting for more than one-fifth of national remodeling activity, according to the National Association of Home Builders (NAHB).
California ranked first with an estimated $22.2 billion in remodeling spending, representing an 8% share of the national market. Texas followed with $20.2 billion, or 7.3%, while Florida recorded $15.4 billion, representing 5.5%.
New York and North Carolina rounded out the top five states by remodeling market share and dollar volume.
While the largest markets remained concentrated in the nation's most populous states, several other regions recorded significant growth.
Michigan posted the largest increase in remodeling spending during the quarter, gaining $637.6 million, or 10.1%. Virginia followed with a $421.9 million increase, while North Carolina added $323.6 million.
Alabama recorded an $311.9 million increase, while Washington's remodeling spending rose $269.1 million.
NAHB said many states showing strong remodeling growth are located in the Midwest and Mid-Atlantic, where older housing stock and higher homeowner equity are supporting demand.
NAHB said remodeling spending is experiencing some cyclical weakness. The number of states with negative growth rates on a four-quarter moving average increased from five in Q4 2025 to 10 in Q1 2026.
Despite those pressures, inflation-adjusted remodeling spending increased more than 10% between 2023 and 2025. The association pointed to aging homes and record-high home equity as key factors supporting continued demand.
The NAHB Remodeling Market Index, which measures confidence among remodelers, has also remained above 60 for the past year.
NAHB expects remodeling activity to continue expanding as homeowners use accumulated equity to finance improvements, including projects designed to support aging in place.
The remodeling sector has also expanded its share of residential construction activity. At the beginning of 2025, the U.S. had approximately 128,000 remodeling firms, compared with 69,000 in 2000.
The latest figures indicate that while higher costs, elevated interest rates and economic uncertainty are creating near-term challenges, the aging U.S. housing stock continues to provide a substantial pipeline for residential renovation and improvement work.
Source: NAHB.
