Residential Remodelers NAICS 236118
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Industry Summary
The 132,700 residential remodeling contractors in the US remodel houses and other single and multi-family dwellings. Popular projects include additions to indoor and outdoor living space, and kitchen and bathroom remodels. Other sources of revenue include providing maintenance/repair services and updating structures to meet new building codes and energy efficiency requirements.
Cyclical Demand
Remodeling activity is highly cyclical, and follows broader economic cycles, according to the Joint Center for Housing Studies Harvard University.
Sensitivity to Interest Rates
Most homeowners rely on loans to finance remodeling projects.
Recent Developments
Jan 17, 2026 - Remodeler Sentiment Holds Solid
- The NAHB/Westlake Royal Remodeling Market Index (RMI) reading for the fourth quarter of 2025 was 64, up four points from the previous quarter, according to a January 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 fourth quarter, the Current Conditions Index portion of the RMI rose three five points to 71 compared to Q3 2025. The Future Indicators Index component of the RMI increased by four points to 56. While aging US housing stock, strong homeowner equity, and the aging-in-place trend kept the RMI solidly in positive territory in Q4 2025, the NAHB noted that high building costs and waning consumer confidence continue to pose challenges to the remodeling industry.
- Sales of existing US homes increased by 5.1% in December from November and were up 1.4% year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Lawrence Yun said, "2025 was another tough year for homebuyers, marked by record-high home prices and historically low home sales. However, in the fourth quarter, conditions began improving, with lower mortgage rates and slower home price growth. December home sales, after adjusting for seasonal factors, were the strongest in nearly three years. The gains were broad-based, with all four major regions improving from the prior month." Existing home sales are a key demand driver for remodeling activity as sellers typically make fixes before putting homes on the market and buyers often make renovations before moving in.
- Homeowners and designers are increasingly embracing “analog rooms,” screen-free spaces to reduce digital overload, The Wall Street Journal reports.. The trend reflects rising nostalgia for tactile experiences, from board games and vinyl records to rotary phones and even refurbished phone booths. Designers say clients want retreats that support presence, creativity, and mental well-being, leading to music rooms, game nooks, sunrooms, and wellness spaces that prioritize calm over connectivity. With fewer tech-related constraints, architects can design more imaginative and flexible layouts. Small touches, including analog clocks, magazine racks, and vintage instruments, signal a broader cultural shift toward homes that feel restorative rather than optimized.
- Producer prices for materials used in residential construction increased 0.1% in November 2025 compared to October and were up 4.2% year over year, according to National Association of Home Builders analysis of US Bureau of Labor Statistics data. Metal molding and trim saw some of the largest price increases, with a rise of more than 48% compared to November 2024. Builders and remodelers may feel some relief from lower lumber costs. Producer prices for softwood lumber fell 8% in November from a year earlier, while ready-mix concrete prices dropped 0.7% over the same period.
Industry Revenue
Residential Remodelers
Industry Structure
Industry size & Structure
A typical residential remodeling firm employs three workers and generates about $1 million annually.
- There are more than 132,700 residential remodelers in the US employing nearly 458,000 workers and generating over $142.9 billion in annual revenue.
- The majority of establishments are small, with over 80% of residential remodelers employing fewer than five workers.
- Business models range from small family-owned firms, which may perform remodeling work themselves, to individuals serving as general contractors who hire employees and subcontractors to complete larger remodeling projects.
- The 50 largest residential remodeling firms (500 to 999 employees) generate only about 7% of the industry’s revenue.
- Residential remodeling spending reached about $503 billion in the fourth quarter of 2024 and is expected to rise to $512 billion by the fourth quarter of 2025, according to Harvard’s Joint Center for Housing Studies.
Industry Forecast
Industry Forecast
Residential Remodelers Industry Growth
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