Remodelers in the Know: Spring 2026 Industry Trends
Stay on top of industry news, current trends and material cost changes with Clear Estimates’ Remodelers in the Know news bulletin!
Each quarter, Clear Estimates summarizes industry news and updates, along with our current material cost data analysis, together in this free & convenient quarterly digest.
In this edition we look at the remodeling industry outlook in the second quarter of 2026.
Remodeling Businesses Cite Favorable Prospects to Start 2026
Remodeling sentiment is strong heading into 2026, with industry confidence rising to its highest level in over a year.
Conditions are particularly strong for larger projects, and future outlook indicators are also improving at a more moderate pace.
In contrast, homebuilder sentiment continues to wane - weighed down by affordability challenges and weaker demand, highlighting a growing divide between remodeling and new construction struggles.
Read the full report from National Mortgage News here. Source: National Mortage News
Remodeling Sector Sees Solid Growth as NAHB Kicks Off National Home Remodeling Month
Remodelers are taking a larger share of the current residential construction market. The number of remodeling firms has nearly doubled since 2000, now accounting for 56% of all related businesses. Employment is following suit, with remodelers accounting for a larger percentage of the workforce.
Industry sentiment remains strong, with outlooks positive for 24 straight quarters, indicating continued demand.
Experts point to key tailwinds as drivers of ongoing growth in the remodeling sector. This includes aging housing stock, high mortgage rates straining new builds, and more homeowners choosing to age in place.
Read the full report from NAHB here. Source: NAHB.org
‘More Measured Approach’ Seen to Remodeling in 2026
Home remodeling remained strong in 2025, but homeowners are becoming more cautious. Fewer homeowners planned projects in 2026, and the expected spend is declining. Still, higher end renovations are growing, with top projects continuing to increase in value.
Demand is driven by long delayed projects and a shift towards “forever homes,” as many homeowners choose to age in place. Life changes, aging homes, and remote work are also key motivators.
Despite careful budgeting, many projects are exceeding initial plans, and most homeowners rely on professionals. This highlights both the complexity of renovations and the ongoing importance of skilled contractors.
Read the full report from Kitchen and Bath Design News here. Source: Kitchen & Bath Design News
Clear Estimates Quarterly Material Pricing Trends – April 2026
Over the past quarter, material pricing across residential construction has shown a broad upward trend, with most regions seeing steady increases in total project costs. Compared to last quarter’s volatility, pricing signals are more consistent, though regional differences are important.
The cost of a 200 sq. ft. kitchen remodel saw slight increases across all regions, ranging from +0.3% in the Northeast to +1.6% in the West - indicating relatively stable short-term pressure. Larger projects continue to rise, with 800 sq. ft. home additions increasing between +1.8% and +3.1% depending on region, with the West experiencing the highest gains.
A deeper look at material categories shows continued variability across key materials:
- Insulation costs have rebounded sharply after prior declines, posting double-digit increases nationwide and signaling a reversal in last quarter’s downward trend.
- Asphalt roofing materials have cooled again, falling approximately -6% nationally after a strong prior-quarter increase, though regional declines vary.
- Dimensional lumber remains volatile, with mixed regional movement - declining in the Northeast (-6.8%) while rising in most other regions, peaking in the West (+10.7%).
- Drywall pricing is also climbing broadly, with an expected national increase of +18%, led by stronger gains in western markets and lighter increases in the Midwest.
- Stud pricing is also trending upward, rising +4.4% nationally, with the West again showing the steepest regional increase (+9.4%).
Overall, pricing patterns suggest a market that is stablilizing quarter-to-quarter, but still sensitive to regional supply dynamics and material shifts.
What This Means for Contractors
Material pricing is rising modestly across most project types, making accurate estimates increasingly important for protecting margins.
Regional divergence remains a key factor. National averages are becoming less reliable than localized pricing data.
Volatility persists in core materials like lumber, drywall, and roofing, which can still significantly impact project-level profitability if not tracked closely.
Contractors who use Clear Estimates can better anticipate regional swings, reduce underbidding risk, and maintain more consistent margins heading into peak construction season.
See the current Quarterly Behavior Index here!
Source: Clear Estimates
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