Remodeling Activity Holds Flat in Q2 Amid Housing Slowdown

The National Association of Home Builders (NAHB) reported that remodeling activity was flat in the second quarter amid a broader nationwide housing slowdown, in its latest State Projections of Remodeling (SPR).

The SPR showed a near-even split in the second quarter: Remodeling spending declined in 26 states and increased in 24 states, according to a release. The average growth rate across all states broke even at 0.0%.

“These flat results are consistent with NAHB’s forecast for remodeling spending in 2026,” NAHB Chief Economist Robert Dietz said. “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.”

“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,” Elliott Pike—NAHB Remodelers chairman—stated. “An aging housing stock, the mortgage rate lock-in effect, home equity gains and more home owners choosing to age in place will support future growth.”

Remodeler confidence has also held steady. The release noted that NAHB’s Remodeling Market Index (RMI)—which measures confidence in the sector—has remained above 60 for the past year.

California led the nation in remodeling spending in the second quarter of 2026, accounting for about 8% of the market. The five largest state markets by share and dollar volume were:

California: 7.9%, or $21.4 billion
Texas: 7.3%, or $19.7 billion
Florida: 5.5%, or $14.8 billion
New York: 4.0%, or $10.8 billion
North Carolina: 3.0%, or $8.2 billion

The five states with the largest dollar increases in remodeling spending in the second quarter were:

Michigan: up $217.1 million (+3.5%)
Alabama: up $158.3 million (+4.2%)
West Virginia: up $140.6 million (+10.7%)
Virginia: up $115.0 million (+1.7%)
Alaska: up $113.0 million (+5.4%)

As reported by the release, NAHB expects remodeling to grow in the years ahead as rising home equity helps more home owners 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.

For the full report, visit nahb.org/SPR.