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The National Association of Home Builders estimates remodeling spending was flat on average across states in the second quarter of 2026, even as the wider housing market slowed. Spending fell in 26 states and rose in 24; only North Carolina and Illinois among the 10 states with the largest market shares recorded growth.
Remodeling spending was flat on average across states in Q2 2026, according to the National Association of Home Builders’ State Projections of Remodeling, with spending declining in 26 states and increasing in 24. The result came amid a broader housing slowdown and suggests the remodeling market was holding level overall, rather than expanding, during the quarter.
The NAHB report put the average growth rate across all states at 0.0%. The nearly even split in state results indicates that the national picture masked differences between local markets. Among the 10 states with the largest shares of remodeling spending, only North Carolina and Illinois recorded growth, NAHB chief economist Robert Dietz said.
The State Projections of Remodeling provides quarterly, state-by-state estimates of remodeling spending, market share and spending changes. NAHB says its estimates come from a proprietary statistical model that combines national quarterly home-improvement spending data, multiple state-level indicators and the association’s annual state remodeling forecast. The figures are model estimates, not a direct count of every remodeling project or contractor invoice.
NAHB’s remodeling-sector confidence measure has also remained above 60 for the past year, according to the report. That measure, the Remodeling Market Index, tracks industry confidence. Its sustained level offers a separate indicator of sentiment, but it does not change the report’s finding that average state spending growth was flat in Q2.
Flat Spending Meets Long-Term Demand
The flat average matters to homeowners, remodelers and building-material suppliers because it points to a market that is not growing evenly. A contractor’s local conditions may differ substantially from the state average, while suppliers and retailers may see demand vary by region and project type. The source report does not provide state-level dollar totals or identify which kinds of projects drove changes.
NAHB leaders point to rising construction costs and weak consumer sentiment as pressures on current projects. For homeowners, those factors can weigh on decisions about timing or scope; for businesses, they make broad assumptions about demand less reliable. At the same time, industry representatives cite longer-term supports, including home equity and the need to update aging homes. Those are expectations about future demand, not evidence that spending rose during this quarter.
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How NAHB Measures Remodeling
The Q2 findings are part of NAHB’s quarterly State Projections of Remodeling, which tracks estimated spending and market share by state. The report’s 0.0% average is an average growth rate across states; the supplied report does not specify a separate national dollar change or a comparison with a particular quarter a year earlier. It should not be read as proof that spending was unchanged in every state.
The association also describes remodeling as an increasing part of residential construction. It reported that the number of remodeling firms stood at 128,000 at the start of 2025, compared with 69,000 in 2000. That longer-term firm count provides industry context, but it is not a measure of Q2 2026 spending and does not establish that each firm’s workload increased.
State-Level Demand Still Varies
The report summary does not give spending totals in dollars, the size of the changes in individual states, or details about which projects account for the gains and declines. It also does not explain how the 0.0% average should be interpreted against a separate national year-over-year baseline. The state count and average growth rate establish the broad pattern, but not the scale of change in each market.
NAHB’s explanations for flat spending and its expectations for future growth are attributed assessments. The material does not quantify how much construction costs, consumer sentiment, mortgage rate lock-in or home equity affected Q2 activity. Nor does the confidence index measure actual spending. Further data would be needed to show whether current conditions persist or improve in subsequent quarters.
Next Quarterly Remodeling Estimates
The next quarterly State Projections of Remodeling release should show whether the near-even split between state increases and declines continues. Readers can compare subsequent results with Q2’s 0.0% average growth rate and see whether more large-market states report increases. The source material does not state a date for the next release.
For now, NAHB’s stated outlook is that remodeling could grow in the years ahead as home equity helps homeowners pay for projects, including modifications for aging in place. That remains a forecast rather than a confirmed change in spending. The next report will provide a new estimate of activity, but the supplied source does not indicate what results to expect.
Key Questions
What happened to remodeling spending in Q2 2026?
NAHB’s State Projections of Remodeling reported an average growth rate of 0.0% across states. Spending declined in 26 states and increased in 24.
Which large states recorded remodeling-spending growth?
Among the 10 states with the largest remodeling market shares, North Carolina and Illinois were the only ones NAHB’s chief economist said recorded growth.
Does flat average growth mean spending was unchanged everywhere?
No. The state results were mixed: spending fell in 26 states and rose in 24. The 0.0% figure is the reported average across states, not a claim that every state had no change.
Why does NAHB expect remodeling to grow over time?
NAHB leaders point to factors including home equity gains, aging housing stock, mortgage rate lock-in and homeowners choosing to age in place. These are reasons cited for a future outlook, not proof of growth in Q2 2026.
Source: hardwareretailing.com
