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Remodeling activity was flat in the second quarter amid a broader nationwide housing slowdown, according to the National Association of Home Builders’ (NAHB) State Projections of Remodeling (SPR). The SPR provides a quarterly, state-by-state analysis of remodeling spending, market share and changes in spending.
The SPR showed a near-even split in the second quarter: Remodeling spending declined in 26 states and increased in 24 states. The average growth rate across all states was 0.0%.
“These flat results are consistent with NAHB’s forecast for remodeling spending in 2026,” says NAHB chief economist Robert Dietz. “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. The model combines national quarterly home improvement spending data, multiple state-level indicators and NAHB’s annual state remodeling forecast.
“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,” says NAHB remodelers chairman Elliott Pike, a remodeler from Homewood, Alabama. “An aging housing stock, the mortgage rate lock-in effect, home equity gains and more homeowners choosing to age in place will support future growth.”
Remodeler confidence has also held steady. NAHB’s Remodeling Market Index (RMI), which measures confidence in the sector, has remained above 60 for the past year. NAHB expects remodeling to grow in the years ahead as rising home equity helps more homeowners fund projects, including upgrades that allow them to age in place. Remodeling also accounts for a growing share of residential construction, both in the number of firms and total construction spending. At the start of 2025, there were 128,000 remodeling firms, up from 69,000 in 2000.
