Recognizing May as National Home Remodeling Month, the National Association of Home Builders (NAHB) highlighted recent data underscoring growing strength in the remodeling sector. Pointing to the latest figures from the Quarterly Census of Employment and Wages (QCEW) data, released by the U.S. Bureau of Labor Statistics, NAHB officials said remodeling is capturing an increasing share of the residential construction market, both in terms of the number of firms and employment. Additional data indicates remodeler sentiment has remained consistently positive since the first quarter of 2020, reflecting sustained demand and industry confidence, they said.
NAHB’s analysis showed that over the past 25 years, the number of remodeling companies has nearly doubled. In 2000, there were fewer than 69,000 firms; in the first quarter of 2025 there were more than 128,000. Remodelers now represent more than half (56%) of all residential building construction (RBC) establishments. The increase is more notable when compared to the housing boom of the mid-2000s, when the market was primarily dominated by home builders and remodelers’ consistently made up around 38–39%.
In addition to the growing share of remodeling firms, NAHB officials said an analysis of employment trends in RBC also shows that remodelers are generating a rising number and share of jobs. As of 2024, the remodeling sector accounted for almost half (49%) of RBC workers, whereas the housing boom of the mid-2000s only saw 30% of payroll employees working for remodelers, while single-family general contractors employed 63% of the RBC workforce.
“Remodeling companies are less affected by the rise and fall of mortgage rates compared to home building companies, so the remodeling industry has continued to grow despite a series of Federal Reserve rate hikes that have driven up the cost of buying a new home and hindered new construction,” said NAHB remodelers chair Elliott Pike, a remodeler from Homewood, Alabama.
For the association, another promising sign for the market is reflected in the results of the NAHB/Westlake Royal Remodeling Market Index (RMI), a quarterly survey of NAHB remodeler members that provides insight into the remodeling industry. The RMI has registered a reading above the break-even point of 50 for 24 consecutive quarters, underscoring a post-pandemic resiliency. Any number over 50 indicates that more remodelers view remodeling market conditions as good than poor.
“The remodeling market has many structural tailwinds that are contributing to the overall growth of our industry,” said Pike. “With an aging housing stock, the persistent mortgage rate lock-in effect and the trend for older homeowners to age-in-place, the remodeling market is positioned for continued growth.”
With multiple tailwinds for industry expansion, including an aging housing stock, “… we are forecasting that remodeling spending will continue to grow in both the short-term and the long-run,” said NAHB economist Eric Lynch. “The SPR will fill a much-needed research gap within the marketplace.”
NAHB data shows that California is the top state for remodeling based on total share, garnering nearly 8% of the market. The top five states, broken down by market share and dollar volume for the fourth quarter of 2025, are:
1. California: 7.9%, or $22.11 billion
2. Texas: 7.0%, or $19.7 billion
3. Florida: 5.5%, or $15.3 billion
4. New York: 3.9%, or $11.0 billion
5. North Carolina: 3.0%, or $8.4 billion
With respect to market growth, NAHB data reveals these five states had the largest change in remodeling spending:
1. Michigan: up $965.1 million (+15.9%)
2. Virginia: up $631.6 million (+9.6%)
3. North Carolina: up $601.6 million (+7.6%)
4. Ohio: up $600.0 million (+8.6%)
5. Alabama: up $445.5 million (+12.0%)