If you have talked to a remodeling contractor lately, you may have noticed something:
The remodeling world is busy.
Maybe you called about a kitchen remodel and learned that construction would not start next month. Maybe you are considering an addition and were surprised by how much planning happens before anyone swings a hammer. Or maybe you simply keep seeing neighbors tear up kitchens, finish basements, add onto their homes, and build new outdoor spaces.
It can feel a little confusing.
Home sales are not exactly flying off the shelves. Mortgage rates are still high compared with a few years ago. Construction costs have gone up. People are talking about economic uncertainty.
So why are homeowners still spending money remodeling?
At Southern Mesa, we work with homeowners throughout Colorado Springs and surrounding areas on remodels, additions, outdoor living projects, and more. We have a front-row seat to the questions homeowners are asking before they invest in their homes and the remodeling market in 2026 is interesting because two things can be true at the same time:
Remodeling is still very active.
And:
Homeowners are becoming more careful about what they spend money on.
In this article, we will break down why remodeling is so busy in 2026, what is trending up, what appears to be cooling down, how the Colorado Springs housing market plays into it, and what all of this actually means if you are thinking about remodeling your own home.
Spoiler: “Everyone else is remodeling” is not a good enough reason to remodel yours.
Is the Remodeling Market Actually Busy in 2026?
Yes.
But it helps to understand what “busy” actually means.
The National Association of Home Builders (NAHB) tracks the remodeling industry through its Remodeling Market Index. An index above 50 means more remodelers describe market conditions as good than poor.
In the second quarter of 2026, the index came in at 61. Current market conditions scored even higher at 70. Large projects over $50,000 scored 64, medium-sized projects scored 73, and smaller remodeling projects scored 74.
What is interesting, though, is that the future-looking part of the index is softer. Leads and inquiries scored 51 and project backlogs scored 54. Those are still positive numbers, but not runaway-growth numbers.
That tells us something important about the 2026 remodeling market:
It is healthy, but it is changing.
Homeowners are still moving forward. They are just asking harder questions before they do.
Homeowners Are Staying Put Instead of Automatically Moving
One of the biggest forces behind remodeling right now has nothing to do with cabinets, tile, or pretty Pinterest photos. It’s the cost of moving. As of September 17, 2026, Freddie Mac reported an average 30-year fixed mortgage rate of 6.95%.
For someone who already owns a home with a much lower mortgage rate, moving can create a difficult decision. Imagine you bought your Colorado Springs home several years ago – you like your neighborhood, kids like their school, the backyard is finally how you want it BUT the house has one major problem: it’s too small.
In the past, the easy answer may have been: “Let’s buy a bigger house.” Today, the conversation may sound more like: “Wait. If we buy a bigger house, what happens to our mortgage payment?”
According to 2026 research from Intercontinental Exchange (ICE), a leading provider of mortgage industry data and technology, millions of homeowners continue to hold mortgages with interest rates well below today’s market rates. Rather than give up those favorable rates, many are choosing to stay in their current homes. That does not mean remodeling is automatically cheaper than moving. But it does mean homeowners are taking a much harder look at the house they already own.
Can we add a bedroom? Can we open up the kitchen or finish the basement? Can we create a multigenerational space? Can we make this house work for the next 10 or 15 years instead of starting over somewhere else?
Those questions are currently fueling a lot of remodeling conversations.
More Homeowners Are Treating Their Current House Like a Long-Term Home
Another important change that’s happening: Many homeowners are not remodeling just to increase resale value. They are remodeling because they plan to actually live there.
Houzz’s 2026 renovation research found that about 61% of renovating homeowners expect to stay in their homes for at least 11 more years, while 44% describe their current residence as their “forever home.” That changes how people think about remodeling. Instead of asking “What will buyers like?” you instead ask “What will make our lives better?”
A family may decide they do not care whether every future buyer wants a large pantry because they want a large pantry. Parents may create a basement suite because an adult child or aging parent may eventually live with them.
In other words, remodeling is becoming less about making a house look impressive for someone else and more about making it work for the people actually living there.
America's Homes Are Getting Older
Another big driver of remodeling is simple: Homes wear out.
According to Harvard’s Joint Center for Housing Studies, the U.S. housing stock reached a record median age of 44 years in 2023. Older houses require more spending on repairs, replacements, and improvements because major systems eventually reach the end of their useful lives.
Colorado Springs has plenty of homes that are reaching this stage. A house built in 1975 is now more than 50 years old. A house built in 1995 is more than 30 years old. Even a house built in 2005 is now old enough that original finishes, mechanical equipment, roofing, windows, plumbing fixtures, and layouts may be ready for attention. This is where remodeling shifts. Older homes also tend to bring more surprises.
That can include:
- Old electrical systems
- Previous unpermitted work
- Galvanized or aging plumbing
- Foundation movement
- Water damage
- Insufficient insulation
- Older windows
- Outdated HVAC systems
- Framing that does not match current plans or expectations
None of those things are particularly exciting. Nobody has ever invited the neighbors over to admire their newly corrected plumbing vent. But these systems matter. As homes get older, more remodeling dollars naturally shift toward making homes safer, more functional, and more reliable.
What Remodeling Projects Are Trending Up in 2026?
There is no single project taking over the entire remodeling market. Instead, several larger themes are showing up.
Homeowners Are Spending More on Function
We are seeing more conversations centered on how the house works rather than just how it looks.
That might mean:
- Improving kitchen storage
- Creating larger mudrooms
- Adding pantry space
- Building a real home office
- Improving laundry layouts
- Adding bathrooms
- Creating better bedroom separation
- Finishing basements
- Improving traffic flow
- Adding usable square footage
Design still matters. Nobody is asking us to make their new kitchen ugly in the name of efficiency but functionality is increasingly driving the project.
Home Additions Continue to Make Sense for Some Families
When the location works but the house does not, an addition becomes an obvious question.
That may include:
- Primary bedroom suites
- Additional bedrooms
- Larger kitchens
- Family rooms
- Home offices
- Multigenerational living areas
- Second-story additions
The important phrase here is “for some families.”
Additions are not cheap. They may require engineering, excavation, foundation work, structural changes, roofing, mechanical work, electrical work, plumbing, permitting, and exterior finishes. In Colorado Springs, soils and foundation conditions can also have a major impact on what is practical. Just because you have a giant backyard does not necessarily mean the correct answer is, “Let’s add 1,000 square feet.” That is why feasibility and budgeting need to come before excitement gets too far ahead of reality.
Aging-in-Place Features Are Becoming More Normal
Aging in place does not have to mean turning your home into something that feels institutional. Homeowners are increasingly thinking about long-term livability before there is an urgent need. Houzz’s 2026 design research points to growing interest in homes that can adapt to people through different stages of life. Many choices like curbless showers or wider walkways are inexpensive when included during a remodel and much more complicated to add later.
Small Remodeling Projects Are Still Strong
Not everything needs to become a six-month renovation.
NAHB’s Q2 2026 remodeling data showed particularly strong sentiment around smaller projects under $20,000, with that category scoring 74. Moderate projects between $20,000 and $50,000 were also strong at 73.
That lines up with something homeowners sometimes overlook: You may not need a full remodel. Sometimes the answer is repairing drywall, adding built-ins, changing lighting, updating a bathroom, repairing a deck, or knocking out a list of handyman projects.
We are big believers in solving the actual problem instead of automatically making the project bigger.
Are Large Remodeling Projects Still Happening?
Yes. NAHB’s index for remodeling projects over $50,000 remained firmly positive at 64 in the second quarter of 2026.
But large-project homeowners tend to be more careful today. A $5,000 decision and a $250,000 decision should not receive the same amount of thought. Those are not signs of a weak remodeling market. They are signs of a more educated homeowner.
We would much rather answer those questions before construction than explain them halfway through demolition.
What Is Trending Down in Remodeling in 2026?
This is where we need to separate headlines from reality.
Harvard’s Joint Center for Housing Studies currently expects remodeling and repair spending growth to slow through the middle of 2027. Their July 2026 forecast expects year-over-year growth to drop to roughly 0.5% by the second quarter of 2027, with spending around $519 billion.
That does not mean remodeling is about to disappear, it means the rate of growth is slowing.
Remodeling Leads Are Not Growing as Fast
NAHB’s forward-looking remodeling index shows leads and inquiries only slightly above neutral. There is still work coming in, but the frenzy is not the same everywhere. Homeowners have more questions, take more time, and eventually decide whether the project or all parts of a project are truly necessary.
Homeowners Are More Sensitive to Budget
High construction costs, financing costs, and general economic uncertainty are making people pay closer attention to the numbers. That means “we’ll figure out the budget later” is becoming a much harder approach and we are fine with that disappearing.
A remodel should not begin with a homeowner having no idea whether their vision is a $75,000 project or a $375,000 project. Early budget conversations may be uncomfortable, but they are much more comfortable than discovering the truth after months of design work.
Remodeling Just for the Sake of Remodeling Makes Less Sense
A trend can make something popular but it cannot make it a good investment for your family.
We expect homeowners to continue asking more questions like:
- Will this improve how we live?
- Are we staying here long enough?
- Can we comfortably afford it?
- Does the project solve a real problem?
- Is there a smaller way to accomplish the same thing?
Construction Material Costs Are Still Affecting Remodeling Prices
If you are hoping a slightly cooler market means remodeling costs are about to fall dramatically, be careful with that assumption.
In NAHB’s Q2 2026 survey, 74% of remodelers said suppliers had increased material prices since March, with the average reported increase at 6.7%.
Remodeling prices are affected by much more than demand.
There is also:
- Skilled labor
- Materials
- Insurance
- Fuel
- Equipment
- Engineering
- Permit costs
- Subcontractors
- Project management
- Waste disposal
- Delivery
- Warranty obligations
This is why construction pricing does not behave exactly like the housing market. Home prices can drop because a seller really wants to move but an electrician is not going to announce they’re cutting their labor prices by 20%.
What Is Happening in the Colorado Springs Housing Market?
The local housing market is also creating an interesting environment for remodeling.
In August 2026, Realtor.com reported that active Colorado Springs listings were up 7.9% from the previous year, while the median list price was down 2.2%. About 35% of active listings had experienced a price reduction. That gives buyers more options than they had during extremely tight housing markets.
Does a Busy Remodeling Market Mean You Should Remodel Right Now?
No. Just because you can remodel does not mean you should. And just because remodeling is active does not mean you need to rush before some imaginary construction door slams shut. You should make the decision based on your home, your finances, your family, and your goals.
How Far Ahead Should You Start Planning a Colorado Springs Remodel?
For a substantial remodel, waiting until you want construction to begin is usually too late.
Larger projects may require:
- Initial conversations and budgeting
- Site evaluation
- Design
- Engineering
- Soils investigation when needed
- Material selections
- Detailed estimating
- Permitting
- Procurement
- Construction scheduling
Depending on scope, this planning can take weeks or months before demolition begins. That does not mean every bathroom remodel requires a six-month pre-construction process. It means the bigger and more complicated the project, the more planning matters.
At Southern Mesa, we would rather spend time answering uncomfortable questions on paper than discovering expensive answers after the house has been opened up. For more information on timelines read our blog: 2026 Home Remodel Timeline: What Colorado Springs Homeowners Should Expect
What Should Homeowners Expect From the Remodeling Market Heading Into 2027?
No one can perfectly predict the construction market. What we can say is this:
Current forecasts point toward slower growth, not the disappearance of remodeling. Harvard’s latest projection has homeowner remodeling and repair spending remaining above $500 billion annually through mid-2027 even as growth cools substantially. The long-term reasons people remodel are also not going away.
The Bottom Line: Remodeling Is Busy, but Smart Planning Matters More Than Ever
The 2026 remodeling market is not simply “booming” or “slowing.” It’s more complicated than that.
Current remodeling conditions remain strong. Homeowners are staying in their houses longer. Aging homes need more work. Higher mortgage rates make moving more difficult for some homeowners. Families are investing in function and long-term livability. At the same time, homeowners are becoming more careful about costs, financing, scope, and timing.
We think that combination can create a healthier remodeling market. The goal should never be to talk someone into construction. The goal should be to help a homeowner understand all the ins and outs and answer all of their questions. Then leave space for the homeowner to decide whether to remodel. That decision tends to age a lot better than whatever happens to be trending on Instagram this week.
Frequently Asked Questions About Remodeling in 2026
Remodeling is still active, but national forecasts show the growth rate slowing. NAHB’s Remodeling Market Index remained positive at 61 in the second quarter of 2026, while Harvard expects annual remodeling and repair spending growth to slow toward 0.5% by mid-2027. That means remodeling is cooling from previous levels, not disappearing.
Several forces are supporting demand at the same time. Many homeowners are staying in their homes longer, America’s housing stock is aging, existing owners may have favorable mortgage rates they do not want to give up, and families still need homes that better fit their current lives.
Not necessarily.
Demand is only one part of construction pricing. Labor, materials, insurance, fuel, engineering, permitting, and subcontractor costs also matter. In NAHB’s Q2 survey, 74% of remodelers reported recent supplier price increases.
A slower remodeling market does not automatically equal cheaper construction.
Nobody can reliably promise that.
Current forecasts suggest remodeling-spending growth will slow, but that does not mean labor and material prices will fall. Homeowners should make decisions using their actual project needs and finances rather than trying to perfectly time the construction market.
Homeowners continue to ask about kitchens, bathrooms, basements, home additions, improved storage, primary suites, multigenerational spaces, outdoor living areas, and projects that help them remain comfortably in their homes longer.
The right project depends more on the homeowner’s needs than what happens to be popular nationally.
It depends.
If you love your neighborhood, have a favorable existing mortgage, plan to stay for many years, and can solve your home’s problems through remodeling, staying may deserve serious consideration.
If the property cannot provide what you need, the neighborhood no longer works for you, or the remodel would require an investment you are not comfortable making, moving may be the better option.
For smaller projects, a few weeks or months may be enough.
For large kitchens, whole-home remodels, structural changes, or additions, beginning conversations several months before your ideal construction date is much safer.
Design, engineering, soils work, estimating, selections, permitting, material ordering, and scheduling can all happen before construction begins.
Usually, yes.
We encourage homeowners to speak with two or three qualified contractors when evaluating a significant project. The goal should not simply be finding the lowest number.
Compare scope, allowances, exclusions, communication, insurance, permitting, project management, experience, and how each contractor handles changes and unexpected conditions.
A good proposal should help you understand what you are buying, not make you feel pressured to sign it.
