NAHB Recaps Remodel Market in Early 2026

Washington, DC, August 21, 2026—NAHB’s recent Mid-Year Remodeling Forecast Update webinar reviewed how the remodeling industry has navigated—and will continue to weather—changing economic conditions, homeowner priorities and market demand.

The group of panelists included:

• Danushka Nanayakkara-Skillington, NAHB AVP of Forecasting and Analysis
• Rachel Bogardus Drew, director of the Remodeling Futures Program at the Join Center for Housing Studies of Harvard University, and
• Eric Lynch, NAHB economist

Economic momentum slows over the first half of 2026

Nanayakkara-Skillington’s macroeconomic update discussed the uncertainties weighing on the economy including a new round of tariffs and rising energy prices driven by the ongoing Iran war. “We are expecting slow economic growth,” said Nanayakkara-Skillington. “However, I do want to point out consumer spending remains resilient and accounts for about 70 percent of U.S. GDP. That said, broader macroeconomic conditions are weakening.” 

Key remodeling updates

Drew reviewed her findings from the Leading Indicator of Remodeling Activity (LIRA) quarterly study.

Highlights included:

• The projected remodeling growth rate downshift in 2027, and
• Optimism in the future of the remodeling industry

“We do have reasons to believe there are brighter days ahead for remodeling from longer-run trends we’re able to observe,” said Drew. “We have an aging housing stock and aging homeowners, both of which will have substantial needs for renovation and remodeling in the future.”

Lynch broke down the results from NAHB’s Remodeling Market Index (RMI) for the second quarter of 2026. Additionally, he provided research derived from special questions within the RMI on the following topics:

• The growing familiarity of aging-in-place and their most popular projects,

• Percentage breakdown of consumers remodeling their home in order to sell versus those looking to fix up after a recent purchase, and 
• The reasons why consumers are moving forward with remodeling projects