Washington, D.C.—California, Texas and Florida accounted for more than 20% of U.S. remodeling activity in the first quarter, according to the National Association of Home Builders.
The findings come from NAHB’s State Projections of Remodeling. The quarterly report tracks remodeling spending, market share and changes in activity across individual states.
“The latest SPR results reflect the most recent GDP report, which showed cyclical weakness in remodeling spending,” said Robert Dietz, NAHB chief economist. “According to the SPR, the number of states with negative growth rates on a four-quarter moving average rose from five in the fourth quarter of 2025 to 10 in the first quarter of 2026. Still, inflation-adjusted remodeling spending increased more than 10% from 2023 to 2025, supported by an aging housing stock and record-high home equity gains for existing home owners.”
NAHB’s Remodeling Market Index also points to steady industry conditions. The index, which measures confidence in the remodeling sector, has remained above 60 for the past year.
NAHB developed the SPR to provide quarterly estimates of remodeling spending and market share by state. The model combines national home improvement spending data with several state-level indicators and NAHB’s annual remodeling forecast.
“The SPR is a valuable analytical resource for the home improvement sector, offering state-level insights as the market works through rising costs, elevated interest rates and economic uncertainty, while still showing strong long-term growth potential,” said Elliott Pike, NAHB Remodelers chairman and a remodeler from Homewood, Alabama. “Many of the leading states for remodeling growth are in the Midwest and Mid-Atlantic, where aging housing stocks and rising home equity are supporting growth.”
States lead remodeling activity
California led the country with 8% of the remodeling market in the first quarter. Texas followed with 7.3%, while Florida accounted for 5.5%.
The five largest remodeling markets by share and spending were:
- California: 8%, or $22.2 billion
- Texas: 7.3%, or $20.2 billion
- Florida: 5.5%, or $15.4 billion
- New York: 4%, or $11.2 billion
- North Carolina: 3%, or $8.4 billion
Remodeling growth varies by state
Michigan recorded the largest increase in remodeling spending during the first quarter. Virginia, North Carolina, Alabama and Washington also posted significant gains.
The states with the largest increases were:
- Michigan: $637.6 million, up 10.1%
- Virginia: $421.9 million, up 6.2%
- North Carolina: $323.6 million, up 4%
- Alabama: $311.9 million, up 8.2%
- Washington: $269.1 million, up 3.5%
NAHB expects remodeling activity to grow in the years ahead. Rising home equity could give more homeowners the ability to fund renovations, including aging-in-place improvements.
Remodeling also continues to account for a growing share of residential construction. The number of remodeling firms reached 128,000 at the beginning of 2025, up from 69,000 in 2000.
