California, Texas and Florida accounted for more than one-fifth of U.S. remodeling activity in the first quarter of 2026, underscoring the outsized role of the nation’s largest housing markets even as higher costs and interest rates begin to weigh on spending growth.<\/p>\n
California led the country with an estimated $22.2 billion in remodeling activity, representing 8% of the national market, according to the National Association of Home Builders’ quarterly State Projections of Remodeling report. Texas followed with $20.2 billion, or 7.3%, while Florida generated $15.4 billion, equivalent to 5.5%.<\/p>\n
Together, the three states represented about 20.8% of the national remodeling market, with the top five states–including New York and North Carolina–accounting for nearly 28% of activity.<\/p>\n
The figures come as the remodeling industry confronts a more uneven growth environment. The number of states recording negative remodeling growth on a four-quarter moving average doubled to 10 in the first quarter from five in the final quarter of 2025, according to NAHB Chief Economist Robert Dietz.<\/p>\n
Still, the longer-term picture remains comparatively strong. Inflation-adjusted remodeling expenditures rose more than 10% between 2023 and 2025, helped by an aging U.S. housing stock and substantial gains in homeowners’ equity. NAHB’s Remodeling Market Index, a gauge of industry confidence, has also remained above 60 for the past year.<\/p>\n
Growth is increasingly spreading beyond the traditional high-volume markets. Michigan posted the largest dollar increase in first-quarter remodeling spending, rising $637.6 million, or 10.1%, followed by Virginia, North Carolina, Alabama and Washington.<\/p>\n
The geographic shift reflects a broader structural dynamic: older housing and accumulated homeowner equity are creating demand for renovations, including projects designed to allow older residents to remain in their homes.<\/p>\n
The remodeling industry itself has expanded sharply. The number of remodeling firms reached approximately 128,000 at the start of 2025, compared with 69,000 in 2000, according to NAHB.<\/p>\n
While elevated borrowing costs, construction expenses and economic uncertainty could constrain near-term activity, NAHB expects remodeling to maintain a larger role in residential construction as homeowners tap accumulated equity to upgrade an increasingly aging housing stock.<\/p>\n\n
California, Texas and Florida accounted for more than one-fifth of U.S. remodeling activity in the first quarter of 2026, underscoring the outsized role of the nation’s largest housing markets even as higher costs and interest rates begin to weigh on spending growth. California led the country with an estimated $22.2 billion in remodeling activity, representing […]<\/p>","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-63761","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\n