Residential Remodelers NAICS 236118

Jul 20, 2026 - Remodeling Index Remains Positive

• The NAHB/Westlake Royal Remodeling Market Index (RMI) reading for the second quarter of 2026 was 61, down one point from the first quarter, according to a July 2026 report by the National Association of Home Builders (NAHB). Any RMI reading over 50 indicates that most remodelers feel market conditions are good. In the second quarter, the Current Conditions Index portion of the RMI remained unchanged at 70 compared to Q1 2026. The Future Indicators Index component of the RMI declined by two points to 52. The NAHB noted that the lock-in effect of high mortgage rates may incentivize existing homeowners to renovate rather than move, but that inflation may prompt some projects to be postponed, especially larger ones.
• Affluent baby boomers are increasingly buying larger homes or expanding their existing ones instead of downsizing in retirement, reflecting changing priorities around aging, family gatherings, and long-term living, according to The Wall Street Journal. Rising home values and investment gains have given many older homeowners the financial flexibility to create homes with features that support aging in place, multigenerational visits, and entertaining. The trend is also reinforced by a limited supply of smaller homes and tax considerations that discourage selling. For the residential remodeling industry, growing demand for home additions, accessory dwelling units (ADUs), kitchen renovations, first-floor primary suites, and accessible design features could create sustained opportunities as older homeowners invest in making larger homes suitable for long-term use.

• According to The New York Post, an analysis from the Common Sense Institute found that permitting requirements in Arizona add an average of 23 days to residential project timelines, raising concerns about the impact of local bureaucracy on essential home repairs. The report reviewed 2.8 million permit records and found wide variations in approval times, fees, and requirements across jurisdictions. The findings come as the US housing stock ages, with the median owner-occupied home now 42 years old, according to the National Association of Home Builders. Nearly 49 million households report at least one needed repair. Researchers and housing experts say much of today’s remodeling spending is focused on critical systems such as roofs, windows, and HVAC units rather than cosmetic upgrades. The report suggests permitting delays can increase costs and make it harder to maintain safe, livable housing.
• According to a recent Pro Remodeler survey, rising costs continue to affect remodeling and home improvement projects. Remodeling project types that have seen the biggest cost increases include bathrooms (68% of respondents), kitchens (67%), and whole-house remodels (56%). Other projects that have seen significant cost increases include window and door replacement (44% of respondents), decks (33%), siding replacement (30%), and handyman services (26%). The survey found that 55% of respondents reported a decline in project volume, 24% reported an increase, and 22% reported no change. To manage higher expenses, 54% of those surveyed said they selectively raise prices by project, 41% reduce project scope, 31% absorb some costs, 29% raise prices across the board, and 29% offer lower-cost material options. Remodelers say homeowners are responding by scaling back projects (63% of those surveyed), delaying work (57%), completing projects in phases (38%), or canceling projects altogether (28%).