NAHB Data Shows California Leads in Remodeling Activity
California was the top state for remodeling based on total market share (8%) while Michigan lead in market growth (15.9%) for the fourth quarter of 2025, according to the National Association of Home Builders' inaugural State Projections of Remodeling (SPR).
The NAHB's newest resource will provide a quarterly analysis of remodeling activity for each state based on total dollar volume, market share, and change in remodeling spending.
“We are pleased to unveil this new economic resource that will serve not only the remodeling sector, but the entire housing industry,” said NAHB Chairman Bill Owens, a home builder and remodeler from Worthington, Ohio.
Based on a proprietary model developed by NAHB, the SPR on a quarterly basis provides a state-level estimation of the market share and total dollar value of remodeling spending. The SPR is a statistical model designed to use national quarterly improvement spending data and estimate remodeling market share by state using multiple indicators and NAHB’s annual state remodeling forecast.
“Given multiple tailwinds for industry expansion, such as the aging housing stock, the trend of aging-in-place improvements, and more home owners that are choosing to stay put, we are forecasting that remodeling spending will continue to grow in both the short-term and the long-run,” said NAHB economist Eric Lynch. “The SPR will fill a much-needed research gap within the marketplace.”
“I am excited to see this latest research initiative from NAHB with a focus on the remodeling sector,” said NAHB Remodelers Chairman Elliott Pike, a remodeler from Homewood, Ala. “Having access to quarterly, state-level spending data will be beneficial for industry remodelers, policymakers and industry analysts.”
These five states lead in total market share and dollar volume for the fourth quarter of 2025, according to the SPR:
California: 7.9%, or $22.11 billion
Texas: 7%, or $19.7 billion
Florida: 5.5%, or $15.3 billion
New York: 3.9%, or $11.0 billion
North Carolina: 3%, or $8.4 billion
With respect to market growth, the SPR reveals these five states had the largest change in remodeling spending:
Michigan: up $965.1 million (+15.9%)
Virginia: up $631.6 million (+9.6%)
North Carolina: up $601.6 million (+7.6%)
Ohio: up $600.0 million (+8.6%)
Alabama: up $445.5 million (+12%)