NAHB data shows remodelers have expanded their share of the residential construction industry, with more firms and jobs and continued positive sentiment.
Source: Original report
May is National Home Remodeling Month, and new analysis from the National Association of Home Builders highlights a strengthening remodeling sector. Recent government and industry data show remodelers now represent a larger portion of the residential construction market by both firm counts and employment.
Key findings
- Over the past quarter-century the number of remodeling companies has almost doubled: fewer than 69,000 firms in 2000 versus more than 128,000 in the first quarter of 2025, according to QCEW-based NAHB analysis.
- Remodeling businesses now make up about 56% of all residential building construction establishments, a notable increase from the mid-2000s when remodelers represented roughly 38–39%.
- Employment has shifted as well. By 2024 remodelers accounted for nearly half (49%) of workers in residential building construction. During the mid-2000s housing boom, remodelers employed about 30% of payroll workers in the sector while single-family general contractors had about 63%.
- The NAHB/Westlake Royal Remodeling Index (RMI) has remained above the 50 break-even mark for 24 straight quarters, signaling that more remodelers view business conditions as favorable than unfavorable.
Why remodeling is expanding
NAHB leaders and remodeler members point to several structural factors supporting the market. An aging housing stock creates ongoing repair and upgrade demand. Many homeowners are reluctant to sell and buy new because of higher mortgage costs, a dynamic that often shifts spending toward improvements to existing homes. Demographic trends, including older homeowners choosing to remain in place, also support steady work for remodelers.
Industry officials note that remodelers tend to be less exposed to fluctuations in mortgage rates than new-home builders. That relative insulation helped the segment continue to add firms and jobs even as rising borrowing costs complicated new construction and home purchases.
Industry outlook and resources
The sustained RMI readings and the rising share of firms and payroll in remodeling point to continued resilience for the sector. NAHB remodeler members report ongoing demand across project sizes, and the association provides consumer resources aimed at helping homeowners plan and execute renovation work.
National Home Remodeling Month is observed in May; Buildertrend sponsors the observance.
