If you have ever hired a contractor to redo a kitchen or add a bathroom, you already know remodeling is big business. But new numbers from the National Association of Home Builders show just how concentrated that business has become.
California, Texas, and Florida accounted for more than 20% of all U.S. remodeling activity in the first three months of 2026. The research, published Aug 10, 2026, breaks down where homeowners are spending money state by state.
California led every state with 8.0% of remodeling activity in the opening quarter of 2026, which works out to about $22.2 billion in spending. Texas came in second at 7.3% of activity, or $20.2 billion, followed by Florida at 5.5%, or $15.4 billion.
New York and North Carolina rounded out the top five. New York took 4.0% of the market with $11.2 billion in spending, while North Carolina captured 3.0% with $8.4 billion.
The top five states alone represent nearly a third of all remodeling dollars in the country. If you have ever wondered why contractors in those states stay so busy, the math is right there.
The big picture looks strong, but the details show some wobble.
Get the free Always Be Buying eBook and learn the simple system for building wealth on any income
Robert Dietz, NAHB's chief economist, said the latest projections reflect what the GDP report showed: some cyclical weakness in remodeling spending. Dietz noted that after adjusting for inflation, spending grew by double digits between 2023 and 2025, helped by the nation's aging homes and owners' near-record levels of equity.
That combination matters. Older homes need more repairs and updates, and owners with rising equity have the borrowing power to pay for them. The slowdown in some states is real, but the long-term trend line still points up.
The biggest gains are not coming from the usual suspects. Michigan led the way with $637.6 million in added spending, a jump of 10.1%. Virginia followed with $421.9 million, up 6.2%, and North Carolina added $323.6 million, a 4.0% increase.
Alabama and Washington also posted strong numbers. Alabama grew by $311.9 million, or 8.2%, while Washington added $269.1 million, up 3.5%.
Elliott Pike, chairman of NAHB Remodelers and a remodeler from Homewood, Ala., said several of the fastest-growing markets sit in the Midwest and Mid-Atlantic. Those regions have older housing stock and rising home equity, which he said are supporting growth even as the industry deals with higher costs and economic uncertainty.
NAHB's confidence gauge for remodelers, known as the Remodeling Market Index, has stayed above the 60 threshold for the past year. A reading above 50 means more remodelers see conditions as good rather than poor, so the industry still feels healthy overall.
Remodeling is becoming a bigger slice of the residential construction pie, whether you measure it by companies or by dollars spent. As of early 2025, the U.S. had 128,000 remodeling companies, compared with 69,000 in 2000. That is nearly double the number of businesses fighting for the same work.
NAHB expects remodeling activity to keep expanding as home equity gives owners more ability to fund projects. That includes changes that help people stay in their homes as they age, like walk-in showers, wider doorways, and main-floor bedrooms.
For anyone thinking about a remodel, the takeaway is about timing and pricing. More contractors mean more competition, which can work in your favor when you are getting bids. But if you live in one of the states where demand is surging, you may face longer waits and higher quotes.
The other angle is simpler. Your home is probably your biggest asset, and the data shows owners are treating it that way. Whether you are updating to sell or fixing things up to stay, the remodeling market is telling you that investing in your house is still a bet people are willing to make.
Download the free Always Be Buying eBook and start putting your money to work today