Remodeling has become increasingly important in the housing sector due to the aging housing stock, the trend of aging-in-place improvements, and more home owners choosing to stay put because of the lock-in effect from elevated mortgage rates. As a result, there has been a rising demand in remodeling activity which is why the National Association of Home Builders (NAHB) is forecasting continued growth for this sector both in the short-term and the long-run.

While national estimates are key to measuring remodeling activity, there is a research gap in localized remodeling data. To address this, NAHB is debuting a new economic resource: the State Projections of Remodeling (SPR). Based on a proprietary model developed by the NAHB Economics team, SPR will provide a quarterly, state-level estimation of the market share and total dollar value of remodeling spending one month after the release of the NAHB Remodeling Market Index (RMI).

Q4 2025 Results

During the fourth quarter of 2025, remodeling spending at the national level came in at $280.1 billion on a seasonally adjusted annualized rate (SAAR), accounting for 37.7% of total private residential fixed investment. Even though spending fell for the second consecutive quarter from $282.6 in Q3 2025, remodeling spending has been larger than single-family construction spending for five straight quarters.

California had the largest market share of remodeling spending at 7.9%, or $22.1 billion. This is followed by Texas (7.0%, or $19.7 billion), Florida (5.5%, or $15.3 billion), New York (3.9%, or $11.0 billion), and North Carolina (3.0%, or $8.4 billion).

The top 10 states account for over 40% of total remodeling spending for the quarter, or $114.5 billion. The top 10 list by market share includes states from all Census regions: four in the South, three in the Northeast, two in the West, and one in the Midwest. Remodeling spending will typically follow population levels, with the top four states (California, Texas, Florida, New York) also the most populous according to the 2025 estimates from the U.S. Census Bureau.

When looking at the top 10 states by the change in remodeling spending from Q4 2024 (on a four-quarter moving average basis or 4QMA), Michigan took the lead with almost a billion dollar increase in spending. The next four states (Virginia, North Carolina, Ohio, Alabama) increased around $600 million. All ten states experienced a growth rate of at least 5.0% year-over-year. Except for the Northeast, all regions were represented within the top 10 by change in spending.

To learn more about this new resource and its methodology, please visit NAHB’s SPR web page.