NAHB Debuts New Resource that Estimates Quarterly Remodeling Spending by State

Why It Matters

The SPR fills a data gap, giving builders, lenders and policymakers granular insight into regional remodeling demand, which is increasingly driving housing market activity as homeowners age in place. Understanding state‑level trends helps allocate capital and forecast labor needs more accurately.

Key Takeaways

• NAHB launches State Projections of Remodeling for quarterly state‑level estimates
• Q4 2025 national remodeling spend hit $280.1 B, 37.7% of residential investment
• California leads with $22.1 B, 7.9% market share
• Michigan posted the largest YoY increase, nearly $1 B growth
• Top 10 states account for over 40% of remodeling spending

Pulse Analysis

Remodeling has become a cornerstone of the U.S. housing economy, propelled by an aging housing stock and a demographic shift toward aging‑in‑place. Homeowners facing high mortgage rates are choosing to upgrade existing homes rather than move, creating sustained demand for renovation projects. The NAHB’s new State Projections of Remodeling (SPR) offers the first systematic, quarterly view of this demand at the state level, complementing the national Remodeling Market Index and giving industry participants a clearer picture of where spending is accelerating.

The latest SPR data reveal that Q4 2025 remodeling expenditures hit $280.1 billion, accounting for 37.7% of private residential fixed investment and eclipsing new single‑family construction for five straight quarters. California, Texas and Florida together represent roughly $57 billion, reflecting their large populations and robust labor markets. Meanwhile, the top ten states—spanning all four Census regions—contribute more than $114 billion, underscoring the geographic breadth of the market. Notably, Michigan posted the strongest year‑over‑year increase, adding nearly $1 billion, while other states such as Virginia and Ohio each grew by about $600 million, indicating a nationwide upswing.

For builders, lenders and investors, the SPR provides actionable intelligence that can shape capital allocation, supply‑chain planning, and workforce development. Regions showing rapid remodeling growth may warrant expanded contractor networks or targeted financing products, while slower markets could signal oversupply or shifting consumer preferences. Policymakers can also leverage these insights to assess the impact of building‑code changes or incentive programs on local economies. As remodeling continues to dominate residential investment, the granular state‑level data from SPR will be essential for strategic decision‑making across the housing sector.