TL;DR
Get backup power and energy gear delivered free with Prime
- Fast, free delivery on millions of items
- Prime Video, Amazon Music and more included
- Member-only deals all year
The National Association of Home Builders’ state estimates show remodeling spending was flat on average in the second quarter of 2026. Spending fell in 26 states and rose in 24, while only North Carolina and Illinois among the 10 states with the largest market shares recorded growth.
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, a measure of activity amid a broader housing slowdown. Spending declined in 26 states and increased in 24, and among the 10 states with the largest shares of the remodeling market, only North Carolina and Illinois posted growth.
The NAHB’s state-by-state analysis reported an average growth rate of 0.0% in Q2. That average masks a near-even split among states: 26 recorded lower remodeling spending and 24 recorded higher spending. The report does not provide individual state growth rates in the supplied summary.
NAHB Chief Economist Robert Dietz said the results were consistent with the association’s forecast for remodeling spending in 2026. He also said second-quarter growth was concentrated in smaller states, with North Carolina and Illinois the only states among the 10 largest by market share to record gains.
The State Projections of Remodeling combines national quarterly home-improvement spending data, state-level indicators and NAHB’s annual state remodeling forecast in a proprietary statistical model. Its estimates cover quarterly remodeling spending and each state’s share of the market; they are model-based projections, not a census of every project or contractor.
Flat Spending, Uneven State Results
The flat average points to a remodeling market that has held level overall, but the state split shows that performance is not uniform. For retailers, contractors and suppliers, the difference between growth in some markets and declines in others may matter when planning inventory, staffing and local sales expectations. The available summary does not quantify how large the gains or losses were in individual states.
The findings also offer a counterpoint to the wider housing slowdown: remodeling activity has not posted broad-based state growth, but it has not fallen in most states either. The measure concerns spending, not the number of projects, so flat spending alone cannot establish whether homeowners are undertaking more or fewer jobs, or changing project size and cost.
NAHB points to longer-term supports for the sector, including an aging housing stock, home-equity gains, mortgage-rate lock-in and homeowners’ interest in aging in place. Those are the association’s outlook factors, not evidence that spending will rise in a particular quarter.
Products Worth Considering
LG S90TR 7.1.3‑Channel OLED Evo TV Matching Home Theater Soundbar (Black)
Samsung 50-inch QN70H Neo QLED 4K Smart TV with Austere 2.5 m 8K HDMI Cable
eufy E25 Robot Vacuum and Mop for Pet Hair, 20,000 Pa, HydroJet Roller Mop
As an affiliate, we earn on qualifying purchases.
NAHB’s Remodeling Measures
The Q2 state estimates are one part of NAHB’s tracking of the remodeling sector. The association also reports a Remodeling Market Index, or RMI, which measures remodeler confidence. The source report says the RMI remained above 60 for the year leading up to the November 2026 report; it does not provide a quarterly RMI value in the supplied material.
NAHB’s longer-run industry figures point to remodeling’s expanding role in residential construction. The association reported 128,000 remodeling firms at the start of 2025, compared with 69,000 in 2000. Those figures describe the number of firms, not the number of workers or the volume of work, and they do not change the flat state-level spending estimate for Q2 2026.
Limits of the State Estimates
The supplied report summary does not include state-by-state spending amounts, percentage changes, or the dollar value of remodeling activity. It also does not specify the comparison period behind each state’s increase or decline, so the 0.0% average should not be read as a measure of total national spending or as evidence that every state was unchanged.
The model’s estimates do not establish why spending moved in each state. Rising construction costs and weak consumer sentiment were identified by Pike as pressures, but the source does not quantify their effects or show how much each factor contributed to the Q2 result. The figures also do not provide a forecast for the next quarter.
Next Quarterly Remodeling Estimates
The next NAHB State Projections of Remodeling update will show whether the near-even split between states with gains and declines persists. No release date or next-quarter estimate is included in the source report. Readers can also watch the Remodeling Market Index for changes in contractor confidence, while keeping in mind that confidence and measured spending are different indicators.
For now, NAHB’s stated outlook is for remodeling to grow in the years ahead as home equity and other long-run factors support demand. That remains a forecast: the Q2 2026 state estimates show flat average growth, and the supplied information does not confirm when a sustained increase will begin.
Key Questions
Was remodeling spending growing in Q2 2026?
Average state growth was 0.0%, according to NAHB’s State Projections of Remodeling. Spending declined in 26 states and increased in 24, so the average does not mean results were identical everywhere.
Which large remodeling markets recorded growth?
Among the 10 states with the largest remodeling market shares, North Carolina and Illinois were the only ones the report said recorded growth. The supplied summary does not give their growth rates.
What does NAHB’s state projection measure?
The model estimates quarterly remodeling spending and market share by state, using national home-improvement spending data, state-level indicators and NAHB’s annual state forecast. It is a statistical estimate, not a count of every remodeling project.
Why does NAHB expect remodeling to grow over time?
NAHB remodelers chairman Elliott Pike cited an aging housing stock, mortgage-rate lock-in, home-equity gains and more homeowners choosing to age in place. These are factors the association says could support future demand, not confirmation of near-term spending growth.
Source: hardwareretailing.com
