Remodelers in the Know: Spring 2025 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 2025.
AHB Celebrates National Home Remodeling Month
May is National Home Remodeling Month, an initiative led by the National Association of Home Builders to highlight the benefits of hiring professional contractors. The NAHB Remodeler’s Council will be hosting two virtual “Shop Talk” events to share strategies with remodelers and industry pros. They also share a number of resources for contractors in their National Home Remodeling Month Toolkit.
See the full article from NAHB.
Source: National Association of Home Builders
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Remodeling Market Strong, But Faces Hurdles
The US Remodeling market has grown by more than 50% since the pandemic, according to Harvard Joint Center for Housing Studies. Despite the growth, shortages of skilled labor and rising inflation prove challenging for remodelers. According to Woodworking Network, remodeling spending is up thanks to a rise in aging-in-place home improvements - but more investment is needed to address ever changing demands.
Read the full report from Woodworking Network here.
Source: Woodworking Network
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Remodeling Costs Rise Amid Market Volatility
Uncertainty around US tariffs has strongly impacted the cost of building materials. According to DJC Oregon, both new construction and remodeling costs have risen significantly, adding up to $10,000 to the cost of a new home build. Contractors are working around these increases, either by passing the costs on to clients or by stockpiling materials. The uncertainty has contributed to a drop in both consumer spending and home sales compared to average.
Read the full story here. Source: DJC Oregon
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Material Pricing Trends - Q2 2025
Material costs have generally increased over the past quarter, particularly in the Northeast and Northwest. We project a 5% increase nationally over the next quarter (up from the typical 2-3%).
Dimensional lumber climbed around 11%, especially in the West. Plywood has increased by more than 7%, with increases as high as 10% seen in the Southeast.
Conversely, stud lumber dropped around 3% over the past quarter, and fiberglass roofing costs also dropped in most regions.
As the largest global importer of gypsum, the U.S. is especially vulnerable to global price shifts. We’re working to monitor these changes and will adjust our models accordingly as tariffs begin to impact prices.
This information is sourced from Clear Estimates’ Q2 2025 Quarterly Behavior Index.
Clear Estimates draws on a wide range of data sources to provide accurate & reliable material & labor costs, covering all 50 States. This makes it easy for remodelers to estimate their jobs accurately and in a fraction of the time. Each quarter Clear Estimates publishes our Quarterly Behavior Index, where we examine material cost trends per region across the US.
See the current Quarterly Behavior Index!
Source: Clear Estimates
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