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Remodeling spending was flat on average across U.S. states in the second quarter of 2026, according to the NAHB’s State Projections of Remodeling. Spending declined in 26 states and rose in 24, while the association said rising costs and weak consumer sentiment are weighing on projects. The report points to longer-term support from aging homes and homeowners’ equity, but does not provide dollar totals in the supplied material.
Remodeling spending was flat on average across U.S. states in the second quarter of 2026, even as a broader housing slowdown weighed on activity, according to the National Association of Home Builders’ State Projections of Remodeling. The estimates found spending fell in 26 states and increased in 24, offering a mixed picture for contractors and home-improvement businesses rather than evidence of uniform growth or decline.
The NAHB’s State Projections of Remodeling (SPR) put the average state growth rate at 0.0% for the quarter. Among the 10 states with the largest shares of the remodeling market, only North Carolina and Illinois recorded growth, NAHB chief economist Robert Dietz said. The report did not provide state-by-state dollar totals in the supplied material.
The SPR tracks quarterly remodeling spending, market share and changes in spending at the state level. NAHB says its estimates use a proprietary statistical model that combines national quarterly home-improvement spending data, state-level indicators and the association’s annual state remodeling forecast. The results are estimates produced by that model, rather than a count of individual projects.
NAHB also reported that its Remodeling Market Index, a measure of remodeler confidence, has remained above 60 for the past year. The source describes confidence as holding steady but does not specify the index’s latest quarterly reading. The measure provides a separate indication of industry sentiment; it does not establish that spending increased.
Flat Spending, Uneven State Results
The overall flat reading masks different conditions across states. More states recorded declines than gains, but the margin was small, and the national average was unchanged. For remodelers, suppliers and home-improvement retailers, that mix suggests demand may vary by market; the supplied report does not quantify how large the state-level changes were.
The figures also matter against the report’s account of rising construction costs and weak consumer sentiment, which NAHB remodelers chairman Elliott Pike said are weighing on projects. Flat spending can indicate that households are proceeding cautiously, though the data provided do not establish why spending changed in any particular state or show the number of projects started, delayed or canceled.
NAHB sees longer-term supports for the sector, including housing stock that is aging, homeowners who may be reluctant to give up low-rate mortgages, accumulated home equity and demand for homes that support aging in place. Those are the association’s outlook factors, not guarantees of future spending growth.
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How NAHB Tracks Remodeling
The SPR is a quarterly state-level estimate designed to show where remodeling spending is changing and how market shares are distributed. Its model draws on national spending data and state indicators, alongside NAHB’s annual forecast. The source does not list the individual indicators or provide enough detail to independently reproduce the estimates.
The report places the second-quarter result within NAHB’s forecast for 2026. Dietz said the flat performance was consistent with that outlook. The source also cites the sector’s expanding role in residential construction: NAHB counted 128,000 remodeling firms at the start of 2025, compared with 69,000 in 2000. That firm count indicates a larger industry over time, but it is not a measure of second-quarter spending or proof that every remodeling business is growing.
Limits of the State Estimates
The supplied report does not state total national spending in dollars, the size of individual state gains or declines, or the specific states that saw declines. It also does not provide the latest Remodeling Market Index reading, only that the index remained above 60 over the past year. Readers cannot use the 0.0% average alone to determine how much spending changed in any one market.
The figures are model-based estimates, and the source does not disclose the full set of state indicators or a margin of uncertainty. While NAHB attributes flat spending to cost pressures and weak consumer sentiment, the material does not isolate the effect of those factors. The expected longer-term supports are an industry outlook, not a confirmed forecast of when growth will resume.
Next Quarterly Remodeling Estimates
The next quarterly update to the SPR should show whether the state pattern shifts and whether the national average moves above or below flat. The supplied report does not announce a release date for the next estimates. Until new data are published, the confirmed picture is limited to the second-quarter state averages and NAHB’s broader forecast for 2026.
Businesses and homeowners can watch for changes in the index, state-level estimates and construction costs as additional indicators of demand. No project-level or near-term spending forecast is provided in the source, so it remains unclear whether the current flat reading will persist through the rest of the year.
Key Questions
What happened to remodeling spending in Q2 2026?
NAHB’s state estimates show an average growth rate of 0.0%. Spending declined in 26 states and increased in 24.
Which large-market states 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 supplied report does not state the size of their gains.
Why does NAHB say remodeling spending was flat?
Remodelers chairman Elliott Pike said rising construction costs and weak consumer sentiment are weighing on projects. The report does not quantify how much each factor affected spending.
Does the report show that remodeling demand will grow soon?
No. NAHB points to possible longer-term supports, including aging homes, home equity and homeowners’ interest in aging in place, but these are outlook factors. The report does not give a specific timeline for renewed growth.
Source: hardwareretailing.com
