Residential Remodelers NAICS 236118

Mar 20, 2026 - Millennials Drive Remodeling Spending

• The New York Times reports that Americans are expected to spend a record $522 billion on home renovations in 2026, driven by high mortgage rates, aging housing stock, and shifting homeowner preferences, according to the Harvard Joint Center for Housing Studies. Elevated borrowing costs are prompting many homeowners to stay in place and invest in upgrades rather than move, while multigenerational living is increasing demand for modifications. Younger homeowners are playing a growing role, with millennials spending about $14,199 per household on improvements, the highest among generations, according to Angi. In a recent survey by online renovations platform Houzz. 41% of homeowners renovate due to dissatisfaction with existing styles, reflecting a focus on personalization. Industry data indicates functional upgrades, such as exterior repairs and system replacements, often deliver the highest returns, though lifestyle-driven renovations continue to gain popularity.
• Home improvement loan activity remains elevated compared with pre-pandemic levels, though demand has cooled from its 2022 peak, according to NAHB analysis of recently released Home Mortgage Disclosure Act (HMDA) data. Applications rose from 1.15 million in 2019 to 1.49 million in 2022, then declined to 1.20 million in 2024, reflecting moderating renovation activity amid higher interest rates. At the same time, the borrower profile is shifting older. Applicants age 65 and older increased their share from 17.8% in 2019 to 18.6% in 2024, driven in part by aging-in-place renovations and long-term homeownership. Younger cohorts also posted modest gains, including those ages 35 to 44, whose share rose to 22.9%. The data suggest sustained remodeling demand, supported by limited housing inventory and aging homes, even as overall loan activity stabilizes below recent highs.

• Sales of existing US homes increased by 1.7% in February 2026 from January but were down 1.4% year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Lawrence Yun said, "Housing affordability is improving, and consumers are responding. Still, there is a long way to go to return to pre-pandemic levels of transaction activity. There are more than 6 million more jobs than in 2019, yet home sales per year are down by one million. Despite the modest gain in home sales, actual housing demand remains muted relative to wage growth and job gains. Wage growth is now outpacing home price growth by almost four percentage points. Mortgage rates are also measurably lower compared to a year ago." Existing home sales are a key driver of remodeling activity, as sellers typically make repairs before listing their homes and buyers often make renovations before moving in.
• Bathrooms were the most common type of remodeling project in 2025, according to a recent survey of residential remodelers by the National Association of Home Builders (NAHB). The NAHB asked remodelers to rank 22 types of projects on a scale of 1 to 5, where 1 = not common and 5 = very common. Bathrooms emerged as the most common project type with 73% of survey respondents ranking them either a 4 or a 5 - "common" or "very common," respectively. Kitchen remodeling ranked second among project types, with 69% of remodelers rating it as common or very common. Whole-house remodeling was the third most popular project type, with 55% of those surveyed ranking it as either common or very common.