Remodeling statistics can be confusing because different reports measure different things. A market size figure in the hundreds of billions is not the same as what one household spends on a single project, and a growth rate from one source will not always match a forecast from another. This guide breaks down the most useful 2026 numbers for the U.S. remodeling market, what they actually measure, and what they mean for homeowners planning a project, including here in Dayton.
U.S. Home Remodeling Statistics at a Glance
| Statistic | 2026 Figure | What It Measures |
| U.S. remodeling market size | About $518 billion | Total annual spending on home improvements and repairs |
| Mid year spending growth | 2.1 percent | Year over year growth, per the Joint Center for Housing Studies LIRA |
| End of year spending growth | 1.6 percent | Slower growth expected by late 2026 |
| NAHB remodeling activity growth | 3 percent | Inflation adjusted activity growth for 2026 |
| 2027 activity forecast | 2 percent | Continued growth expected into 2027 |
| Median homeowner renovation spend | Around $20,000 | Typical project spending, based on recent Houzz data |
| Top 10 percent renovation spend | $140,000 or more | Higher end remodeling projects |
| Professional hiring rate | Around 90 to 91 percent | Share of renovators who hire a contractor or specialty trade |
| Homeowners going over budget | About 39 percent | Renovators who exceeded their planned budget |
| Aging in place demand | 73 percent | Remodelers reporting increased requests for aging in place features |
How Big Is the U.S. Home Remodeling Market in 2026?
The remodeling market covers home improvements, repairs, and renovation work across owner occupied homes nationwide. It is a different number than what a single homeowner spends, and different again from how fast remodeling activity is growing.
Spending on home improvements and repairs grew from about $404 billion in 2019 to $611 billion in 2022, driven largely by pandemic-era demand. That number cooled to roughly $503 billion in 2024 as the market settled into a steadier pace. Heading into 2026, spending is projected to reach around $518 billion, according to the Joint Center for Housing Studies. This market figure reflects total national spending, not the cost of any individual project, which is worth keeping in mind if you’re comparing it to your own renovation budget.
Is the U.S. Remodeling Market Growing or Slowing in 2026?
The short answer is both, depending on which measure you look at.
What the JCHS LIRA Indicates
The Leading Indicator of Remodeling Activity, published by the Joint Center for Housing Studies, tracks year-over-year growth in spending on home improvements and repairs. For 2026, the LIRA points to growth of about 2.1% in the middle of the year, easing to around 1.6% by year end. This suggests a gradual slowdown rather than a sharp drop, tied closely to the broader housing market and interest rate environment.
What the NAHB Forecast Indicates
The National Association of Home Builders tracks remodeling activity rather than spending momentum. Its forecast points to about 3% growth in inflation-adjusted remodeling activity for 2026, followed by another 2% in 2027. Remodeling has also been gaining ground within the broader housing sector, with its share of total housing spending rising from about 33% in 2007 to 44% in 2025, according to NAHB economist Eric Lynch.
These two measures shouldn’t be read as contradictory. The LIRA tracks spending growth, while the NAHB figure tracks activity. A market can see activity grow even as the pace of spending growth eases, and that’s close to what’s happening heading into 2026.
How Much Do Americans Spend on Home Remodeling?
Spending figures vary widely depending on which group of homeowners you look at.
| Spending Metric | Amount | What It Means |
| Median renovation spend | About $20,000 | Typical middle of the road homeowner or project |
| Top 10 percent spend | $140,000 or more | Higher spending households and larger projects |
| Large kitchen remodel | Around $55,000 | Major kitchens over 200 square feet |
| Large primary bathroom | Around $25,000 | Major bathrooms over 100 square feet |
Median spending moved from $18,000 in 2021 up to $24,000 in 2023, then settled closer to $20,000 in 2024. High-end projects continue to pull the average upward, with luxury kitchens starting around $150,000 for larger spaces. If you’re budgeting for a kitchen project in Dayton, our kitchen remodel ideas post is a useful starting point for figuring out where your project might land.
What Are the Most Popular Home Remodeling Projects in 2026?
Systems and Infrastructure
Plumbing led renovation activity in recent data, with about 27% of homeowners investing in this area, followed closely by electrical work at 25%. Heating and automation upgrades each drew interest from about 22% of renovators, with cooling and security close behind at 21%.
Kitchen and Bathroom Remodeling
Kitchens and guest bathrooms remain the most popular interior projects, each chosen by about 24 percent of homeowners, with primary bathrooms close behind at 22%. Our bathroom remodeling and kitchen remodeling services cover both ends of this trend for Dayton homeowners, and our guide to luxury bathroom remodels is worth a look if you are planning something more upscale.
Outdoor Remodeling
Outdoor projects have picked up noticeably, rising to about 53% of renovators, reflecting stronger interest in decks, lighting, and security upgrades around the home.
Whole Home Remodeling
Larger, multi room projects remain less common than single room updates but still account for a meaningful share of total spending, especially among homeowners planning to stay in their current house long term. Our design build remodeling team handles this kind of larger scope work from planning through completion.
Which Homeowners Spend the Most on Remodeling?
Generation X currently leads renovation spending, with a median around $25,000 per project, just ahead of Baby Boomers at roughly $24,000. Older homeowners and Gen X households have landed in a similar range recently, while Millennials have historically spent less per project, though their kitchen spending has climbed as more of them take on larger homes.
Aging in place has also become a bigger driver among Baby Boomers specifically. Recent industry survey data shows that 56% of remodelers report doing aging-in-place-related work, and 73% say requests for these features have increased over the past five years.
How Much Are Home Remodeling Costs Increasing?
Cost pressure in remodeling comes from a few different directions, and it is worth separating them rather than treating remodeling cost as one single number.
Labor costs. Skilled trade demand continues to outpace supply in many markets, which keeps contractor pricing firm.
Material costs. Cabinets, countertops, and fixtures have all seen price pressure, and new tariffs on imported cabinets and vanities have added further cost in some categories.
Construction input costs. Broader inflation and building material pricing continue to influence renovation budgets, separate from labor pricing alone.
These pressures affect project cost more than they affect the overall market size figure, which is one reason the two numbers can move differently. If cost is a concern for your own project, our post on financing your home construction project covers a few ways to plan around it.
How Many Homeowners Hire Professional Remodelers?
Around 90 to 91% of renovators hire a professional for at least part of their project, based on recent Houzz survey data. This figure reflects renovators who reported hiring help, not every American homeowner, so it should be read as describing active remodelers rather than the general population. Nearly half of these homeowners also bring in a specialty trade beyond a general contractor.
Why Do Home Remodeling Projects Go Over Budget?
About 39% of homeowners reported exceeding their planned renovation budget, based on recent survey data. Common causes include unexpected structural, plumbing, or electrical issues found once work begins, along with material price changes, scope changes made mid-project, and permit or inspection requirements that weren’t accounted for early on. Our post on red flags to watch for when hiring a contractor covers a few ways to avoid the most common surprises before they happen.
Is Home Remodeling a Good Investment in 2026?
The answer depends on the project. Some updates return a large share of their cost at resale, while others are worth doing mainly for daily comfort rather than resale value.
| Project | Estimated ROI |
| Garage door replacement | About 268% |
| Steel entry door replacement | About 216% |
| Manufactured stone veneer | About 208% |
| Minor kitchen remodel | About 113% |
| Wood deck addition | About 95% |
Not every project trends upward. Larger, more personalized projects like upscale primary suite additions and major luxury kitchen remodels have seen ROI slip slightly in recent data, partly due to rising material costs. A project can still be worth doing for lifestyle reasons even if it does not return every dollar at resale. Financing plays a role in this decision too, and our guide on home remodeling loans covers a few common options for larger projects. It is also worth checking our post on what home renovations are tax deductible before you finalize your budget.
What Are the Biggest Drivers of the Remodeling Market in 2026?
A few forces continue to support remodeling demand nationwide. The average U.S. home has aged significantly, moving from about 31 years old in 2006 to roughly 41 years old in 2023, which naturally increases the need for updates and system replacements. Higher mortgage rates are also keeping many homeowners in their current house longer, which pushes more of them toward remodeling instead of moving. Add in aging-in-place needs and a steady desire for better outdoor living space, and demand looks likely to hold up even as spending growth cools slightly.
2026 U.S. Home Remodeling Market Outlook
In the short term, expect steady but slower growth through the rest of 2026, with the LIRA pointing toward a dip from about 2.1% to 1.6% by year end. In the medium term, the NAHB forecast points to continued activity growth into 2027, even as overall spending growth eases. Labor and material costs remain the biggest risk to project budgets, while an aging housing stock and mortgage rate lock-in continue to support demand. If interest rates ease later in the year, that could give both new construction and remodeling activity a further boost.
What This Means for Dayton Homeowners
National numbers are useful for context, but every remodeling project comes down to your own home, budget, and timeline. If you are thinking about a kitchen update, a bathroom remodel, or a larger whole home project in Dayton, Kettering, or Centerville, our room renovation team can walk you through realistic pricing for your specific space rather than a national average. Our post on the best time to renovate your home is also worth a look if you are still deciding when to start.
FAQ
What is the size of the U.S. home remodeling market in 2026?
The market is projected to reach around $518 billion in total spending on home improvements and repairs.
Is the U.S. home remodeling market growing in 2026?
Yes, though growth is slowing slightly through the year, from about 2.1% at mid-year to 1.6% by year end.
How much does the average homeowner spend on remodeling?
Median spending is around $20,000, while the top 10% of remodelers spend $140,000 or more.
What are the most popular home remodeling projects in 2026?
Plumbing, electrical, kitchens, and guest bathrooms rank among the most common projects, alongside a rising share of outdoor upgrades.
Are remodeling costs increasing in 2026?
Labor and material costs, including tariffs on some imported cabinetry and fixtures, continue to put upward pressure on project pricing.
What percentage of homeowners hire professional remodelers?
Around 90 to 91% of active renovators hire a professional for at least part of their project.
Which generation spends the most on home renovations?
Generation X currently leads with a median spend around $25,000, just ahead of Baby Boomers.
Why are home remodeling projects going over budget?
Unexpected structural or system issues, scope changes, and rising material costs are the most common causes.
At Builders Group Construction, we help Dayton homeowners turn national trends into a real, workable plan for their own home. Reach out through our website for a free consultation and a clear estimate for your next project.
