Remodelling activity across the United States showed little overall movement in the second quarter of 2026, reflecting a slowdown in housing-related spending and pressure from construction costs and consumer sentiment. Data from the National Association of Home Builders (NAHB) indicate that growth was uneven across state markets, with increases in smaller markets offset by declines elsewhere.
NAHB's State Projections of Remodeling report found that spending decreased in 26 states and increased in 24 during the second quarter. The average growth rate across all states was 0%.
Among the 10 states with the largest shares of the national remodeling market, only North Carolina and Illinois recorded spending growth, according to NAHB Chief Economist Robert Dietz. The results were consistent with the association's forecast for remodeling spending in 2026.
California led the country with 7.9% of the market, representing $21.4 billion in spending. Texas followed with $19.7 billion, or 7.3%, while Florida accounted for $14.8 billion, or 5.5%. New York and North Carolina ranked fourth and fifth, respectively.
Despite the flat national average, several states posted notable increases in remodeling expenditures. Michigan recorded the largest dollar gain, with spending rising $217.1 million, or 3.5%.
The other leading states by dollar increase were:
NAHB's estimates are based on a proprietary statistical model combining national quarterly home improvement spending data, state-level indicators and the association's annual state remodeling forecast.
NAHB Remodelers Chairman Elliott Pike identified rising construction costs and weak consumer sentiment as factors weighing on current projects. He also pointed to the age of the U.S. housing stock, accumulated home equity, mortgage rate lock-in and demand for aging-in-place improvements as potential sources of longer-term remodeling activity.
Remodeler confidence has remained comparatively stable. NAHB's Remodeling Market Index has stayed above 60 for the past year, indicating continued confidence among industry professionals.
The sector also represents a substantial part of residential construction activity. The number of remodeling firms reached 128,000 at the beginning of 2025, compared with 69,000 in 2000.
The flat national growth rate highlights differences in regional demand and spending conditions. Contractors and suppliers may need to account for local market performance when evaluating opportunities, particularly as cost pressures and consumer confidence affect project decisions.
Longer-term demand drivers, including home improvement needs in an ageing housing stock and modifications for older residents, remain important considerations for residential remodelers.
Source: NAHB.
