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Remodeling spending averaged no growth across U.S. states in the second quarter of 2026, according to the National Association of Home Builders. Spending fell in 26 states and rose in 24, while only North Carolina and Illinois among the 10 states with the largest remodeling market shares recorded gains.
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. The figures show a sector holding steady amid a broader housing slowdown, but with gains limited among states that account for the largest shares of remodeling activity.
The NAHB’s state projections put the average growth rate at 0.0% across states in Q2. The near-even split in state results means the nationwide picture was not one of uniform stagnation: spending estimates were down in 26 states and up in 24. The report did not provide state-level growth rates in the supplied material.
Among the 10 states with the largest remodeling market shares, only North Carolina and Illinois recorded spending growth, NAHB chief economist Robert Dietz said. He described the results as consistent with the association’s forecast for remodeling spending in 2026. The source does not specify the size of either state’s increase or the declines in other large-market states.
The State Projections of Remodeling provides quarterly estimates of remodeling spending and market share for each state. NAHB says its estimates combine national quarterly home improvement spending data, multiple state-level indicators and the association’s annual state remodeling forecast in a proprietary statistical model. The figures are estimates produced by that model, rather than a direct census of completed projects.
Uneven Results Across Major Markets
The flat average suggests remodeling has so far avoided a broad contraction in the reported quarter, but it also indicates that growth was not widespread. For homeowners, contractors and building-material retailers, the difference between a stable national average and mixed state results matters: business conditions can vary substantially by location, and the strongest activity cannot be assumed in every market.
The limited growth among the 10 states with the largest market shares may be especially relevant to firms that depend on high-volume markets. However, the report excerpt does not identify the spending levels or the magnitude of state changes, so it cannot show how much the two growing states offset losses elsewhere. The overall 0.0% figure is an average growth rate, not evidence that spending was identical in every state.
NAHB remodelers chairman Elliott Pike attributed pressure on projects to rising construction costs and weak consumer sentiment. Those factors can affect whether homeowners proceed with planned work and how much they spend. The report’s broader message is mixed: immediate activity was flat, while NAHB sees longer-term support from housing and homeowner trends.
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How NAHB Tracks Remodeling
The Q2 figures come from NAHB’s State Projections of Remodeling, a quarterly state-by-state series covering spending and market share. The report uses a statistical model drawing on national home improvement spending data and state indicators, alongside NAHB’s annual remodeling forecast. Its estimates are intended to show changes over time and differences among states.
Other indicators cited by NAHB point to continuing confidence in the trade. The association said its Remodeling Market Index has stayed above 60 for the past year; the source describes the index as a measure of industry confidence. That reading does not establish that spending increased in the quarter, and the source does not give the index’s Q2 value.
NAHB also reported that there were 128,000 remodeling firms at the start of 2025, compared with 69,000 in 2000. That longer-term count offers industry context, but it is not a measure of Q2 2026 spending or a direct indicator of current project demand.
State-Level Spending Details Missing
The available report summary does not give the dollar value of remodeling spending, individual state growth rates, or the size of gains and declines. It also does not state whether the 0.0% average is weighted by state market share. Readers therefore cannot use the headline average alone to determine how much total spending changed nationally or compare the scale of state-level movements.
The source attributes flat activity to construction costs and consumer sentiment through Pike’s comments, but does not quantify the effect of either factor. It also does not provide the Q2 Remodeling Market Index reading or break out spending by project type. The extent to which homeowners postponed, reduced or proceeded with projects remains unclear from the material provided.
Watch Later-Quarter Estimates
The next useful point of comparison will be NAHB’s subsequent quarterly State Projections of Remodeling, which can show whether the Q2 average persists or gives way to a broader rise or decline. Updated state estimates could also clarify whether North Carolina and Illinois continue to stand apart among larger markets.
NAHB’s longer-term outlook rests on factors including homeowners’ equity, an aging housing stock and demand for modifications that support aging in place. Those are forecasts and potential sources of future demand, not confirmation that spending will rise in a particular quarter. Further data on spending, state-level changes and remodeler confidence will be needed to assess how the sector is performing.
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, so the flat average reflects a mixed state-by-state picture.
Which large remodeling markets recorded growth?
NAHB chief economist Robert Dietz said North Carolina and Illinois were the only states among the 10 with the largest remodeling market shares to record growth. The source does not provide their growth rates.
How does NAHB estimate remodeling activity by state?
NAHB says its State Projections of Remodeling use a proprietary statistical model that combines national quarterly home improvement spending data, state-level indicators and the association’s annual state remodeling forecast.
What does NAHB say is affecting remodeling projects?
Remodelers chairman Elliott Pike said rising construction costs and weak consumer sentiment are weighing on projects and keeping spending flat. NAHB also points to home equity, aging housing and aging-in-place needs as possible longer-term supports for demand.
Source: hardwareretailing.com
