The US states of California, Texas and Florida are expected to account for over a fifth of the total US renovation market by the first quarter of 2026, underscoring the disproportionate role of the country's largest housing markets. This comes even as rising costs and higher interest rates begin to weigh on spending growth. Demand for housing and the necessity to adapt older properties to modern standards continue to drive activity.
Across the entire US market, spending on alterations and maintenance is expected to reach approximately US$279 billion in 2026. This represents a significant increase from current levels and demonstrates the sector's continued vitality. Although growth rates may be more moderate than in previous boom years, the renovation market remains a significant economic factor.
Regional drivers and market volume
California, with its large population and high property prices, is expected to remain the leading state in the renovation sector. Continuous migration to the Golden State and the appreciation of existing properties contribute significantly to this. Texas benefits from strong population growth and a dynamic economy, which drives both new construction and renovation. Florida, a popular destination for retirees and holidaymakers, also sees high demand for the modernisation of flats and houses, often driven by the desire for energy efficiency and adaptation to climatic conditions.
The analysis indicates that construction costs and the availability of skilled labour will continue to pose challenges. Despite these factors, fundamental data such as property value appreciation and the ageing building stock remain strong arguments for continued investment in renovation and alteration. Property owners are increasingly willing to invest in their homes to improve living comfort or increase resale value.
Market outlook
Forecasts for the renovation market show that the USA can continue to expect robust activity, even if the growth dynamics adjust. Experts point out that market growth in some areas could be influenced by the general economic situation, particularly by the development of interest rates and consumer purchasing power. Nevertheless, the sector remains resilient due to the high demand for modernisation and adaptation.
- —Projected market volume 2026: US$279 billion.
- —Three states (CA, TX, FL) responsible for over 20% of the US market.
- —Higher costs and interest rates dampen growth but do not significantly curb it.
- —Continued demand for modernisation and value enhancement drives the market.
