Remodeling Takes a Bigger Role in the Residential Construction Market
For many homeowners, moving into a brand-new house is no longer the only way to get the space, comfort, and features they want. As home prices remain challenging for many buyers and existing houses continue to age, more homeowners are choosing another option: remodeling the home they already own.
Recent industry data shows that remodeling is taking an increasingly larger share of the residential construction market. According to an analysis by the National Association of Home Builders (NAHB), the number of remodeling businesses in the United States has nearly doubled over the past 25 years, growing from fewer than 69,000 in 2000 to more than 128,000 by the first quarter of 2025. Remodelers now account for approximately 56% of residential building construction companies.
That shift reflects a broader change in the way homeowners are thinking about their properties.
More Homeowners Are Choosing to Improve Existing Homes
The housing market has changed significantly over the past several years. For many people, purchasing a new home may not be the most practical option, particularly when home prices and other costs associated with moving remain high.
Instead, homeowners are investing in their current properties.
Kitchen upgrades, bathroom renovations, new flooring, updated cabinets, exterior improvements, and other remodeling projects can help make an older home more comfortable and functional. These improvements can also allow homeowners to adapt their existing space to changing needs rather than searching for a different property.
As a result, remodeling has become a larger part of the residential construction market.
Remodeling Businesses Have Nearly Doubled
Data analyzed by the National Association of Home Builders (NAHB) highlights just how significantly the remodeling industry has grown.
According to 25 years of Quarterly Census of Employment and Wages data, the number of remodeling establishments in the United States increased from fewer than 69,000 in 2000 to more than 128,000 in the first quarter of 2025.
That means the number of remodeling businesses has nearly doubled over the period.
Remodelers now account for approximately 56% of residential building construction companies, a substantial increase from the mid-2000s. During the housing boom at that time, remodelers typically represented only about 38% to 39% of residential construction businesses.
The numbers show that remodeling has moved from being a smaller segment of the market to representing more than half of residential building construction companies.
The Housing Crash Highlighted Remodeling’s Resilience
The remodeling industry has experienced challenges along with the rest of the housing market, including during the 2008 housing crisis. However, the decline in remodeling businesses was considerably smaller than the losses experienced by home builders.
Between 2007 and 2012, the number of remodeling establishments declined by about 8%. During the same period, approximately one-third of home builders went out of business.
Because home building declined more sharply, remodeling's share of the residential construction sector increased. By 2011, remodelers represented about 46% of the sector.
Their share continued to grow in the years that followed.
Remodeling Continued Growing After the Pandemic
The housing market experienced another period of significant activity following the COVID-19 pandemic.
Historically low mortgage rates, the expansion of remote work, and increased interest in larger or more functional living spaces contributed to strong demand for both new construction and remodeling.
However, remodeling businesses grew at a faster rate.
By 2022, remodelers represented approximately 54% of residential construction firms. The continued growth since then demonstrates that the demand for remodeling isn't simply a short-term reaction to changing housing conditions.
Instead, it appears to reflect a longer-term shift in how homeowners approach their properties.
Why Remodeling Makes Sense for Many Homeowners
For homeowners, remodeling can offer several advantages.
Rather than dealing with the costs and uncertainty of purchasing another home, a homeowner can focus on improving the property they already have. Remodeling can also make it possible to address several needs at once.
For example, an outdated kitchen can be redesigned to provide more usable space. An older bathroom can be renovated with updated fixtures and finishes. Worn flooring can be replaced, cabinets can be upgraded, and other areas of the home can be repaired or refreshed.
These improvements can make a home better suited to the people living in it while addressing maintenance issues that may have developed over time.
Barnett Home Repairs Can Help Improve Your Home
The growing remodeling market reflects a simple reality: many homeowners would rather improve the home they already have than go through the process of buying and moving into another one.
At Barnett Home Repairs, we understand that every home improvement project has different goals. Whether you're updating a room, replacing worn materials, improving functionality, or tackling a larger remodeling project, having an experienced team can help turn your plans into reality.
From remodeling and renovations to general home repairs, the right improvements can make your home more comfortable, functional, and enjoyable for years to come.
Barnett Home Repairs, LLC
If your home needs an update, you don't necessarily need a new house. Sometimes, you just need the right improvements.
Contact Barnett Home Repairs to discuss your next home improvement or remodeling project.
