Remodeling Market Expected to Grow Through 2026 and Beyond

Aging housing stock, mortgage lock-in effect, and aging-in-place trend drive remodeling industry optimism.

Published on Feb. 25, 2026

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The remodeling market is poised for continued growth in the coming years, driven by factors like an aging housing stock, the persistent mortgage rate lock-in effect, and the trend for older homeowners to age-in-place, according to industry experts. The NAHB/Westlake Royal Remodeling Market Index has registered a reading above 50 for 24 consecutive quarters, showcasing the sector's post-pandemic resiliency. Residential remodeling activity is expected to increase 3% in 2026 and an additional 2% in 2027.

Why it matters

The remodeling market is becoming an increasingly important part of the residential construction industry, with remodeling firms and overall spending growing significantly over the past two decades. This trend is driven by structural factors that are expected to persist, indicating continued strength for the remodeling sector.

The details

The typical age of a home has increased from 31 years old in 2006 to 41 years old in 2023, contributing to the growth in remodeling. The mortgage rate lock-in effect, where homeowners with low rates stay put instead of moving, is also incentivizing remodeling over home sales. Additionally, the aging-in-place trend has led 56% of remodelers to be involved in home modification work, with 96% of remodelers saying most or some of their customers are familiar with aging-in-place.

  • The NAHB/Westlake Royal Remodeling Market Index has registered a reading above 50 for 24 consecutive quarters.
  • Residential remodeling activity is expected to increase 3% in 2026 and an additional 2% in 2027.

The players

NAHB

The National Association of Home Builders, a trade association that hosted the panel discussion on the remodeling market.

Eric Lynch

NAHB Economist, who provided insights on the factors driving the remodeling market's growth.

Alan Hanbury, Jr.

President and CEO of Consulting by House of Hanbury Builders Inc., who presented on best practices for setting KPIs for remodelers.

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What they’re saying

“There are many factors contributing to the continued growth of the remodeling market, including the aging housing stock.”

— Eric Lynch, NAHB Economist

“It is extremely important for remodelers to establish benchmarks and target attainable future goals if they want to continue to succeed and grow.”

— Alan Hanbury, Jr., President and CEO of Consulting by House of Hanbury Builders Inc.

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

The remodeling market's continued growth is driven by structural factors like an aging housing stock, mortgage lock-in effect, and aging-in-place trend that are expected to persist, indicating a positive long-term outlook for the industry.