A New Way to Measure Remodeling Markets

As home prices remain elevated nationwide, more owners are choosing to invest in their current properties instead of moving. In 2024, roughly 320,000 fewer home owners relocated than in 2023, according to the National Association of Home Builders.

The result is a remodeling market that’s gaining traction nationwide and expected to keep growing. Remodeling demand varies from state to state, so the growth won’t be distributed evenly. Mississippi, for example, has seen remodeling activity accelerate faster than national trends. What does the market look like in your state and how does it stack up against 49 others?

NAHB’s new State Projections of Remodeling (SPR) model fills a long-standing research gap by providing quarterly estimates of remodeling spending as a share of each state’s total GDP and its total dollar value. While national estimates exist, state level remodeling data has been limited.

Why the SPR is Important

Residential remodeling activity is expected to increase 3% in 2026 and an additional 2% in 2027, according to NAHB. Access to quarterly, state-level spending data will be key for business owners, industry professionals, and policymakers to make informed decisions to guide the industry.

Remodeling spending typically follows population levels, so it’s no surprise that the states with the largest remodeling market share and total dollar value are also the more populous. California led the nation in Q4 2025 in remodeling market share at 7.9% and total dollar value of $22.1 billion, followed by Texas (7%; $19.7B) and Florida (5.5%; $15.3B).

What can less populous states learn from the data? That growth rates often matter more than the total size. The ability to see whether your state’s year-over-year remodeling activity is soaring or sinking is invaluable, as is knowing how strong it is within the state’s overall economy.

Kansas, for example, has a remodeling sector that contributes 1% of the state’s GDP, but activity grew 10.3% between Q4 2024 and Q4 2025, and the dollar value spent increased by $250.1 million. Without state-level data from the SPR, this progress could easily go unnoticed at the national level.

How to use the SPR

The SPR provides baseline insights to show where the remodeling market stands. For policymakers, it highlights the successes of their state and shows where improvements may be needed. In Kansas, the SPR provides legislators with concrete evidence for why they need to support the remodeling industry and enact policies that spur growth. For states that are lagging, especially compared to their neighbors, it serves as an alarm bell that change likely is needed to stimulate the industry.

For remodelers and other industry professionals, the SPR is a business development resource that can highlight the areas they should prioritize and be used to help them prepare for the future. Certain factors, like slow population growth, can increase remodeling market share compared to new construction, so the SPR can help business owners can act accordingly and perhaps shift more of their business to the remodeling space. Understanding where the industry is heading is crucial to making vital adjustments.

Paired with resources like Housing Starts and Building Permits reports and the Remodeling Market Index, the SPR is part of a broader set of NAHB tools that can help the residential construction industry identify trends, track performance, and plan with greater confidence. 

Find the SPR and additional industry indexes and NAHB research at eyeonhousing.org.