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%.
What NAHB says
“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, Alabama.