Hardware Retailing The Industry's Source for Insights and Information
Remodeling has taken over a significant portion of the residential construction market, with most U.S. households unable to afford new construction. The number of remodeling establishments has nearly doubled in the last 25 years and remodelers now represent over half (56%) of all residential building construction (RBC) establishments, according to an analysis by the National Association of Home Builders’ Eye on Housing.
The remodeler’s share of the RBC sector rose sharply after the 2008 housing crash and has grown steadily since 2011. The post-pandemic housing boom—driven by low mortgage rates, the rise of remote work and demand for larger living spaces—has increased remodeling activity. Remodelers have continued to grow in number amid recent Federal Reserve rate hikes as they are less sensitive to fluctuations in mortgage rates than homebuilders.
As of 2024, the remodeling sector accounted for almost half, 49% of RBC workers. In the production workforce, over half (51.2%) of workers work for remodeling firms, compared to 30% in the early 2000s, according to NAHB’s analysis of the Bureau of Labor Statistics’ Current Employment Status (CES) survey.
The typical remodeling firm remains small, averaging between three and four employees per establishment, with the rise in remodeling employment coming from the creation of new firms or the reclassification of homebuilders shifting toward renovation work as remodelers.
