Kicking off National Home Remodeling Month this May, the National Association of Home Builders (NAHB) is highlighting recent data that underscores the growing strength of the remodeling sector. The latest figures show remodeling is capturing an increasing share of the residential construction market, both in terms of the number of firms and employment. Additional data indicates remodeler sentiment has remained consistently positive since the first quarter of 2020, reflecting sustained demand and industry confidence.

NAHB’s analysis of the Quarterly Census of Employment and Wages (QCEW) data shows that over the past 25 years, the number of remodeling companies has nearly doubled. In 2000, there were fewer than 69,000 firms, and in the first quarter of 2025 there were more than 128,000. Remodelers now represent over half (56%) of all residential building construction (RBC) establishments. By contrast, during the housing boom of the mid-2000s when the market was primarily dominated by home builders, remodelers’ share consistently hovered around 38–39%.

In addition to the growing share of remodeling firms, the analysis of employment trends in RBC also shows that remodelers are generating a rising number and share of jobs. As of 2024, the remodeling sector accounted for almost half (49%) of RBC workers. In contrast, during the housing boom of the mid-2000s, only 30% of payroll employees worked for remodelers, while single-family general contractors employed 63% of the RBC workforce.

“Remodeling companies are less affected by the rise and fall of mortgage rates compared to home building companies, so the remodeling industry has continued to grow despite a series of Federal Reserve rate hikes that have driven up the cost of buying a new home and hindered new construction,” said NAHB Remodelers Chair Elliott Pike, a remodeler from Homewood, Ala.

Another promising sign for the market is reflected in the results of the NAHB/Westlake Royal Remodeling Market Index (RMI), a quarterly survey of NAHB remodeler members that provides insight into the remodeling industry. The RMI has registered a reading above the break-even point of 50 for 24 consecutive quarters, underscoring a post-pandemic resiliency. Any number over 50 indicates that more remodelers view remodeling market conditions as good than poor.

“The remodeling market has many structural tailwinds that are contributing to the overall growth of our industry,” said Pike. “With an aging housing stock, the persistent mortgage rate lock-in effect and the trend for older home owners to age-in-place, the remodeling market is positioned for continued growth.” 

NAHB remodeler members remain committed to working with their clients on all their remodeling projects, whether large or small. Consumers can find a remodeler in their area by searching NAHB’s directory of professional remodelers. NAHB also has a variety of helpful consumer resources available on the website, including tips on how to choose a professional remodeler.

National Home Remodeling Month is sponsored by Buildertrend.