Home remodeling spending has slowed across the country, but Illinois is bucking the trend. According to the National Association of Home Builders (NAHB), Illinois was one of only two states among the nation’s ten largest remodeling markets to report spending growth during the second quarter of 2026. North Carolina was the other.
Nationally, remodeling spending fell 2.3% from the previous quarter to an annualized rate of $271.2 billion, the lowest level in two years. Spending declined in 26 states and increased in 24, resulting in an average state growth rate of 0%. Remodeling has now experienced spending declines in five of the past six quarters.
How Did Missouri and Illinois Compare?
Illinois’s performance stands out, particularly given the weakness in several of the nation’s largest remodeling markets. Missouri wasn’t specifically highlighted in NAHB’s release, which didn’t provide its individual growth rate or spending total. I’ve included NAHB’s interactive map below so you can explore the figures for both Missouri and Illinois and compare them with other states.
Of course, statewide numbers don’t necessarily tell us what’s happening in the St. Louis market. Illinois includes Chicago and the rest of the state, while Missouri includes Kansas City and numerous other markets. Still, the differences between states are interesting, particularly since construction costs and mortgage rates affect homeowners nationwide.
What This Means for St. Louis Homeowners
I think several factors will continue supporting remodeling activity here in St. Louis. We have a substantial inventory of older homes that need updating, and many homeowners are reluctant to give up their low mortgage rates to purchase another home at today’s higher rates. For those homeowners, improving their existing home may make more financial sense than moving.
However, spending money remodeling doesn’t necessarily mean you’ll recover that investment when you sell. Some improvements add considerably more value than others, and what makes sense in one St. Louis neighborhood may not make sense in another. Before undertaking a major project, particularly if you’re considering selling in the next few years, it’s worth understanding what buyers in your market are actually willing to pay for.
Interactive Map: Remodeling Spending by State
Use the interactive NAHB map below to compare remodeling spending, market share, and spending changes in Missouri, Illinois, and the rest of the country. These are NAHB estimates based on its statistical model rather than an actual count of remodeling projects.
The bottom line is that remodeling remains an important part of the housing market, even during periods of slower growth. With the age of our housing stock and the number of homeowners choosing to stay put rather than move, I expect home improvements to remain a significant part of the St. Louis real estate market for years to come. As always, though, real estate is local, and the value of any improvement ultimately depends on the home and its market.
Sources: NAHB State Projections of Remodeling, Q2 2026 and NAHB Eye on Housing, November 9, 2026.
For more information about the St. Louis real estate market, buying or selling a home, or finding out what your home is worth, contact MORE, REALTORS®.
