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The National Association of Home Builders’ State Projections of Remodeling found average remodeling spending growth across states was 0.0% in the second quarter of 2026. Spending fell in 26 states and rose in 24, while NAHB cited construction costs and weak consumer sentiment as pressures on projects.
Remodeling spending was flat on average across U.S. states in the second quarter of 2026, even as the broader housing market slowed, according to the National Association of Home Builders’ State Projections of Remodeling. The estimates show spending declined in 26 states and increased in 24, indicating that the overall reading masks divergent state-level results.
The quarterly report put the average growth rate across all states at 0.0%. Among the 10 states with the largest shares of remodeling activity, North Carolina and Illinois were the only ones to record growth, NAHB chief economist Robert Dietz said. The report did not provide state-by-state growth rates in the supplied material.
NAHB’s State Projections of Remodeling estimates quarterly remodeling spending and market share for each state. The association says its proprietary statistical model combines national quarterly home-improvement spending data, multiple state-level indicators and NAHB’s annual state remodeling forecast. The results are estimates generated by that model, rather than a direct count of every project or contractor transaction.
NAHB remodelers chairman Elliott Pike attributed the flat performance to rising construction costs and weak consumer sentiment, which he said are weighing on projects. At the same time, he described the sector as having longer-term growth potential. NAHB also reported that its Remodeling Market Index, a measure of industry confidence, had remained above 60 for the previous year; the source material does not give the index’s Q2 reading.
Flat Spending Signals Uneven Demand
The national average points to a remodeling market that was holding steady rather than expanding in Q2, but the split between states matters for businesses whose prospects depend on local demand. Retailers, contractors and suppliers may face different conditions across regions, and the result among the 10 largest markets suggests that growth was limited among states representing a substantial share of activity.
For homeowners, flat spending does not mean projects stopped. It indicates that estimated spending did not grow on average across states during the quarter. Higher costs and weak consumer sentiment, cited by NAHB, can make households delay or scale back work. The report does not quantify how much either factor affected spending, or identify the types of projects most affected.
NAHB’s longer-term outlook also differs from the short-term result. The association points to home equity, older housing, mortgage-rate lock-in and aging-in-place needs as potential supports for future remodeling. These are industry expectations, not evidence that spending has already started to rise.
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How NAHB Tracks Remodeling Spending
The State Projections of Remodeling is a quarterly, state-by-state estimate of remodeling spending, market share and changes in spending. Its methodology combines national spending data with state indicators and an annual forecast, so the report offers a modeled view of activity rather than a census of completed renovations.
NAHB’s confidence measure offers a separate signal from the spending estimates. The association said the Remodeling Market Index stayed above 60 for the past year, but that measure reflects confidence, not a direct tally of dollars spent. The source does not specify the index’s scale or provide its second-quarter value, so it should not be treated as interchangeable with the flat spending-growth figure.
The remodeling sector has also expanded in the number of firms over time, according to NAHB. At the start of 2025, the association counted 128,000 remodeling firms, compared with 69,000 in 2000. That longer-term increase provides industry context but does not establish how many firms were active in Q2 2026 or how individual businesses performed during the quarter.
State-Level Details Still Missing
The supplied report summary does not include individual state growth rates, dollar totals, or the size of changes in the states that rose or fell. It is therefore not possible to tell whether most states had small movements or whether a few larger changes drove the overall picture. The 0.0% average is reported as the average growth rate across states; the material does not specify whether it represents a weighted national total.
The report also does not break results down by project category, homeowner type or spending source. It attributes pressure to costs and consumer sentiment through Pike’s assessment, but provides no numerical analysis separating those influences from other factors. The article describes a broader housing slowdown, but the supplied data does not quantify that slowdown or establish a direct causal link between it and remodeling spending.
NAHB’s future-growth outlook remains a forecast. The source does not give a specific growth rate or timing for a recovery, and the confidence index’s latest quarter reading is not included. Those gaps limit conclusions about whether flat spending will persist in coming quarters.
Next Quarterly Remodeling Estimates
The next State Projections of Remodeling release should show whether the near-even state split continues, and whether growth broadens beyond the two large-market states Dietz identified. A subsequent report may also clarify how spending changes across states and how the latest estimates compare with NAHB’s 2026 forecast.
Readers tracking the sector can also watch NAHB’s Remodeling Market Index for updated confidence readings. For now, the confirmed Q2 picture is flat average growth across states, with regional differences and future demand still unresolved. The supplied report does not state a release date for the next estimates.
Key Questions
What happened to remodeling spending in Q2 2026?
NAHB’s State Projections of Remodeling reported an average growth rate of 0.0% across states. Spending declined in 26 states and increased in 24.
Which large states recorded remodeling 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 material does not list their growth rates.
What factors did NAHB cite for flat spending?
NAHB remodelers chairman Elliott Pike pointed to rising construction costs and weak consumer sentiment as pressures on projects. The source does not quantify their separate effects.
Does the report predict remodeling will remain flat?
No specific future growth rate is provided. Dietz said the flat Q2 results were consistent with NAHB’s 2026 forecast, while Pike and NAHB cited longer-term factors that may support growth. The timing and scale of any increase remain unclear.
How does NAHB calculate its state remodeling estimates?
NAHB says its proprietary model combines national quarterly home-improvement spending data, state-level indicators and the association’s annual state remodeling forecast. The figures are estimates, not a direct count of every renovation project.
Source: hardwareretailing.com
