Remodelers in the Know: Winter 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 fourth and final quarter of 2025.
Consumer Caution Keeps Home Improvement Spending in Check
A recent report from Marketplace.org shows demand for home improvements is declining. According to the report, Home Depot cut its 2025 profit forecast due to weak spending on renovations.
Consumer uncertainty and a struggling housing market are to blame, as fewer home sales mean fewer renovation projects.
A milder storm season also impacted demand for emergency repairs, while hesitancy among homeowners has delayed bigger ticket projects. Instead, homeowners are spending on maintenance, repairs, and small upgrades over full remodels.
Other indicators, however, show slow but steady growth for the remodeling industry in 2026.
See the full article from Marketplace here:
Marketplace.org - Why Home Depot Had a Disappointing Quarter
Source: Marketplace.org
Lowe’s Predicts Increase in Remodeling Spending for 2026
In contrast, a recent report from Realtor.com is more optimistic. According to the report, Lowe’s stock rose after Home Depot’s earnings fell, driven by the chain’s optimism for home improvements in 2026.
Homeowners are expected to use equity to finance larger projects while staying with lower rate mortgages. Overall, spending is expected to increase by up to 2.5%.
Aging in place upgrades are also in demand, as more homeowners are opting to stay in their homes long term. Despite the economic uncertainty, homeowner interest is high with around 93% planning projects in the coming year.
Read the full report from Realtor.com here:
Realtor.com - Home Renovation Boom 2026
Source: Realtor.com
Remodeling Industry to See Modest Growth in 2026
Home improvement spending is expected to remain steady into 2026, according to Harvard’s Leading Indicator of Remodeling Activity (LIRA).
After spending declined in 2024-2025, the 2026 outlook is more positive with expected growth in 2026. Spending is projected to increase around 2.4% early in 2026, and then decrease to around 1.9% by Q3 of 2026.
Demand for remodels & upgrades is supported by an increase in permits and home sales, with spending forecasted to reach over $520B in the coming year.
See the full article from JCHS Harvard here:
JCHS Harvard - Remodeling Expected to Continue Steady Growth Next Year
Source: Harvard Join Center for Housing Studies
Clear Estimates Material Pricing Trends - Q4 2025
This quarter we’ve seen significant material cost increases, particularly in framing and fencing.
The cost of a 2x4 stud is up 16% nationwide, driven by 20%+ increases across the Midwest, Northeast, and Southeast. Only the West saw a drop of 6%.
Pressure Treated Fencing is up 25% nationally, with the Northeast and Southeast seeing the largest increases of 40%+.
New home addition costs rose in all regions, especially in the Southeast and Midwest (+1.6%).
This information is sourced from Clear Estimates’ Q4 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 here!
Source: Clear Estimates
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