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The National Association of Home Builders estimates that remodeling spending was flat on average across U.S. states in the second quarter of 2026. Spending declined in 26 states and increased in 24, while only North Carolina and Illinois posted growth among the 10 states with the largest shares of the market.
Remodeling spending was flat on average across states in Q2 2026, according to the National Association of Home Builders’ State Projections of Remodeling, even as the U.S. housing market faced a broader slowdown. The NAHB’s estimates showed declines in 26 states and increases in 24 states, a split that points to uneven activity rather than widespread growth.
The report 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 source report does not give individual state growth rates or dollar totals, so it does not show the size of the changes in states that rose or fell.
The State Projections of Remodeling provides quarterly estimates of spending, market share and changes in spending by state. NAHB says its proprietary statistical model combines national quarterly home-improvement spending data with multiple state-level indicators and the association’s annual state remodeling forecast. The figures are model estimates, not a direct count of every remodeling project or household outlay.
Dietz said the flat result was consistent with NAHB’s forecast for remodeling spending in 2026. Elliott Pike, NAHB’s remodelers chairman and a remodeler from Homewood, Alabama, pointed to rising construction costs and weak consumer sentiment as pressures on projects and spending. The report did not quantify how much either factor contributed to the second-quarter result.
Flat Spending Masks State Differences
The near-even division between states with gains and declines suggests that national remodeling activity was holding steady overall, but not uniformly. For homeowners, contractors and building-material retailers, that distinction matters: a flat average does not mean every local market had the same conditions, and the state-level figures indicate that results differed across the country.
Cost pressures and low consumer confidence may make households more cautious about starting or expanding projects, Pike said. At the same time, the report describes longer-term sources of demand, including an aging housing stock, homeowners’ accumulated equity and decisions to remain in their homes as they age. Those factors could support future work, but they do not establish that spending will rise in a particular quarter.
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NAHB’s Remodeling Indicators
The Q2 estimate comes amid a wider housing slowdown, but the source report does not provide a comparable measure of home sales, construction or housing activity alongside the remodeling figures. It also does not give a year-over-year comparison for the quarter. The reported 0.0% average is a state-level growth measure; it should not be read as a dollar total or as evidence that spending in every state was unchanged.
Other NAHB indicators cited in the report point to continued confidence in the sector: the Remodeling Market Index, which measures remodeler confidence, had remained above 60 for the preceding year. The association also reported that the number of remodeling firms rose from 69,000 in 2000 to 128,000 at the start of 2025. These figures provide industry context, but they do not change the Q2 finding of flat average spending.
State-Level Spending Details Missing
The report provides the number of states with increases and decreases and the average growth rate, but it does not publish the state-by-state dollar amounts or rates in the supplied material. The size and causes of individual state changes are therefore unclear. It is also not possible from these figures alone to determine how the flat average compares with the same quarter in 2025 or with the prior quarter.
The NAHB’s explanations of cost and sentiment pressures, and its expectations for future demand, are attributed assessments rather than a breakdown of measured causes. The report does not say how remodeling spending will move in the next quarter or how the broader housing slowdown will affect later estimates.
Watch for Later Quarterly Estimates
The next State Projections of Remodeling release will show whether the balance between states with gains and declines changes and whether the average moves away from 0.0% growth. Readers can also track the NAHB’s Remodeling Market Index for changes in contractor confidence. Until later data are published, the Q2 report supports a picture of broadly flat average spending, with substantial variation among states and no confirmed national rebound.
Key Questions
What did NAHB report about remodeling activity in Q2 2026?
NAHB’s State Projections of Remodeling estimated an average growth rate of 0.0% across states. 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 in the quarter.
How does NAHB estimate state remodeling spending?
The association says its proprietary model combines national quarterly home-improvement spending data, multiple state indicators and its annual state remodeling forecast.
Why does NAHB say spending remained flat?
Remodelers chairman Elliott Pike attributed pressure on projects to rising construction costs and weak consumer sentiment. The report does not quantify the contribution of either factor.
Does the report predict a remodeling rebound?
NAHB expects remodeling to grow in coming years, citing factors such as home equity, aging homes and more owners choosing to age in place. That is an outlook, not a confirmed forecast for the next quarter; the report gives no specific next-quarter spending estimate.
Source: hardwareretailing.com
