The remodeling market is expected to grow in the coming years, according to experts at a panel hosted by the National Association of Home Builders (NAHB) during the International Builders’ Show in Orlando. Factors such as an aging housing stock, persistent mortgage rate lock-in effects, and a trend for older homeowners to age in place are contributing to this outlook.
The NAHB/Westlake Royal Remodeling Market Index (RMI), which surveys NAHB remodeler members each quarter, has remained above the break-even point of 50 for 24 consecutive quarters. This indicates ongoing strength in the remodeling sector compared to single-family and multifamily housing markets over the past five years.
“There are many factors contributing to the continued growth of the remodeling market, including the aging housing stock,” said NAHB Economist Eric Lynch. “The typical age of a home has increased from 31 years old in 2006 to 41 years old in 2023. And with the dramatic rise in home equity post-pandemic, more home owners are able to finance remodeling projects that align with their needs.”
Lynch also pointed out that homeowners with low mortgage rates often choose not to move, instead opting for remodeling projects. While this lock-in effect is lessening, it continues to influence decisions.
The number of remodeling firms has grown from 69,000 in 2000 to 128,000 at the start of 2025. Home improvement spending’s share increased from 33% in 2007 to 44% by early 2025.
Aging-in-place modifications have become more common among remodelers. The RMI survey found that over half of remodelers are involved in these projects and nearly all reported consumer familiarity with aging-in-place concepts. Additionally, requests for such features have risen significantly or somewhat over the last five years according to most respondents.
Bathroom remodels, kitchen remodels and whole house renovations were identified as the most common projects undertaken by remodelers in 2025—consistent with historical trends reported by NAHB.
Looking forward, residential remodeling activity is projected to increase by three percent in 2026 and another two percent in 2027 after adjusting for inflation. “NAHB is forecasting growth for the remodeling sector both in the short-term and the long run, driven by these structural tailwinds that are not expected to change in the near future,” said Lynch.
Alan Hanbury Jr., president and CEO of Consulting by House of Hanbury Builders Inc., spoke about best practices for setting key performance indicators (KPIs) so remodelers can manage their businesses profitably. He emphasized: “It is extremely important for remodelers to establish benchmarks and target attainable future goals if they want to continue to succeed and grow. It is even better when those objectives are based on data from your fellow peers.”
Hanbury referenced NAHB’s Remodelers’ Cost of Doing Business Study as a source where professionals can compare their performance against industry standards across several financial measures.
“Every remodeling business is unique, so understanding the differences among various groups of remodelers is crucial for making the most appropriate benchmarks for your company,” Hanbury said. “It is also essential to know the most important financial ratios used for benchmarking and how they are calculated so your comparisons are legitimate.”
NAHB supports professionals within residential construction through advocacy efforts, educational resources, networking opportunities and tools aimed at promoting business success and innovation within home building (official website). The organization operates as a trade association focused on supporting its nationwide network (official website).
