The Remodeling Tailwinds Are Strong—and Long-Lasting

Multiple factors will boost the remodeling market in the coming years, including aging housing stock, the persistent mortgage lock-in effect, and older homeowners seeking to age in place, according to an industry panel hosted by the National Association of Home Builders during the 2026 International Builders’ Show in Orlando.

The panelists noted that these factors will not be subsiding any time soon.

This positive outlook is affirmed by the NAHB/Westlake Royal Remodeling Market Index (RMI), a quarterly survey of NAHB remodeler members. The RMI has registered a reading above the break-even point of 50 for 24 consecutive quarters, showcasing a post-pandemic resiliency.

“There are many factors contributing to the continued growth of the remodeling market, including the aging housing stock,” said NAHB Economist Eric Lynch. “The typical age of a home has increased from 31 years old in 2006 to 41 years old in 2023. And with the dramatic rise in home equity post-pandemic, more homeowners are able to finance remodeling projects.”

The mortgage rate lock-in effect is another important tailwind boosting remodeling activity. Homeowners with low mortgage rates often choose to stay in their current homes rather than move and take on a higher rate, which means households are incentivized to pursue remodeling projects before considering a sale.

The remodeling sector continues to grab a larger share of the residential construction market, Lynch said, especially when looking at the number of firms and overall construction spending. There were 128,000 remodeling firms at the start of 2025, up from 69,000 in 2000. And home improvement spending share increased from 33% in 2007 to 44% in the first quarter of 2025.

The trend of older homeowners choosing to age in place has contributed to the growth in the remodeling market. The RMI survey showed that 56% of remodelers are involved in work relating to aging-in-place. The survey also showed that 73% of respondents indicated that requests for aging-in-place features have significantly or somewhat increased during the past five years.

A recent RMI survey found that the most common remodeling projects in 2025 were: bathroom remodels, kitchen remodels, and whole house remodels. These findings are consistent with historical trends reported by NAHB.

Looking ahead, residential remodeling activity is expected to increase 3% in 2026 and an additional 2% in 2027 in inflation-adjusted terms.

Show attendees also heard from Alan Hanbury Jr., CGR, CAPS, GMR, president and CEO of Consulting by House of Hanbury Builders, based in Newington, Conn., who presented on best practices for setting KPIs for remodelers to grow and manage their businesses.

“It is extremely important for remodelers to establish benchmarks and target attainable future goals if they want to continue to succeed and grow,” said Hanbury. “It is even better when those objectives are based on data from your fellow peers.”

This type of data can be found in NAHB’s Remodelers’ Cost of Doing Business Study, where remodelers can compare their current performance against the industry. The study shows gross and net profit, assets and liabilities, owners’ equity and financial ratios, among many other indicators.