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Remodeling spending was flat on average across U.S. states in the second quarter of 2026, according to the National Association of Home Builders’ State Projections of Remodeling. Spending declined in 26 states and rose in 24, while NAHB cited construction costs and weak consumer sentiment as pressures on projects.
U.S. remodeling spending was flat on average in the second quarter of 2026, with declines in 26 states and increases in 24, according to the National Association of Home Builders’ State Projections of Remodeling. NAHB reported the result amid a nationwide housing slowdown, with state results varying.
The NAHB’s State Projections of Remodeling (SPR) put the average growth rate across all states at 0.0%. Of the 10 states with the largest shares of remodeling activity, only North Carolina and Illinois recorded growth, NAHB chief economist Robert Dietz said. The report does not provide state-level spending figures in the source material.
The SPR estimates quarterly remodeling spending and market share for each state using a proprietary NAHB statistical model. The model combines national quarterly home-improvement spending data, state-level indicators and the association’s annual state remodeling forecast. The figures are model-based estimates of spending and market share.
NAHB said the flat result is consistent with its forecast for remodeling spending in 2026. The association’s Remodeling Market Index, which measures remodeler confidence, has remained above 60 for the past year, according to the report. The source does not provide a latest reading.
Costs Keep Projects Under Pressure
The state estimates show a 0.0% average growth rate, with gains in 24 states and declines in 26. Homeowners and remodeling businesses may encounter different conditions across states; the reported state figures show that results varied.
NAHB remodelers chairman Elliott Pike attributed pressure on projects to rising construction costs and weak consumer sentiment. NAHB did not quantify the separate effects of those factors or establish that they caused the flat result. The figures report state and national remodeling spending estimates.
NAHB also points to longer-term sources of demand, including older homes, home equity and homeowners’ decisions to remain in their homes as they age. Those are the association’s expectations for future growth, not evidence that spending rose in Q2.
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A Sector With Long-Term Demand
The SPR provides a quarterly, state-by-state view of remodeling spending, market share and changes in spending. The Q2 result was close to evenly divided geographically: 26 states were down and 24 were up, while the reported average was unchanged.
The source reports that remodeling accounted for a growing share of residential construction in both firm numbers and total construction spending. It says the United States had 128,000 remodeling firms at the start of 2025, compared with 69,000 in 2000. These figures describe the number of firms, not their average size, employment or revenue, and they do not establish how many businesses were active in Q2 2026.
NAHB says its outlook for future remodeling growth reflects factors such as housing stock age, the mortgage-rate lock-in effect, home-equity gains and more homeowners choosing to age in place. The report presents these as supports for potential future demand; it does not specify when or how strongly they may affect spending.
State-Level Detail Is Limited
The source provides the number of states with increases and declines and identifies North Carolina and Illinois among the largest markets that grew, but it does not give spending amounts, growth rates by state or the size of individual changes. The statewide average also does not show how much activity varied between markets.
The SPR relies on a statistical model, and the source does not provide the model’s uncertainty ranges or a breakdown of how much each input influenced the estimates. It also does not report a latest RMI value, project counts, homeowner spending by project type or revisions to earlier estimates. The figures therefore do not establish whether flat spending resulted mainly from fewer projects, lower project costs or other changes.
NAHB’s Outlook for Remodeling
NAHB says its outlook is for remodeling growth in the years ahead, citing home equity and aging-in-place needs as factors that could support demand. The Q2 figures show a 0.0% average growth rate across states, with 26 states reporting declines and 24 reporting increases.
NAHB also reported that its Remodeling Market Index has remained above 60 for the past year. The source does not provide a latest index reading or specify when its longer-term growth outlook may be reflected in spending.
Key Questions
Was remodeling spending up or down in Q2 2026?
The average growth rate across states was 0.0%, according to NAHB. Spending declined in 26 states and increased in 24.
Which large remodeling markets recorded growth?
Among the 10 states with the largest remodeling market shares, North Carolina and Illinois were the only ones NAHB said recorded growth. The source does not provide their growth rates.
What does NAHB say is weighing on remodeling projects?
NAHB remodelers chairman Elliott Pike cited rising construction costs and weak consumer sentiment. The report does not quantify the impact of either factor.
Does the report predict remodeling will keep growing?
NAHB expects remodeling to grow in the years ahead, citing home-equity gains, aging housing stock and homeowners choosing to age in place. That is an outlook, not a confirmed result for future quarters.
Source: hardwareretailing.com
