Even with higher costs and ongoing labor shortages, many home improvement contractors are entering 2026 with confidence. A recent industry survey reported by HousingWire found that 65% of contractors expect revenue growth in the year ahead, and many saw increased income throughout 2025.
For homeowners planning a remodel, this optimism offers an important signal about where the renovation market is headed.
Remodeling Demand Is Still There
According to the survey, more than half of contractors reported higher revenue over the past year. Average project values have also increased, suggesting homeowners are still willing to invest in meaningful upgrades rather than postpone improvements.
Theodore Labonte sees this trend reflected in his own work. Rising home values across Greater Boston and Worcester have made remodeling a practical choice for homeowners who want to improve comfort and functionality without entering a competitive housing market.
Labor and Material Costs Remain a Challenge
While demand remains strong, contractors continue to face hurdles. Skilled labor shortages are still one of the biggest issues across the industry. Finding experienced tradespeople can affect timelines and scheduling, especially for larger or more complex renovations.
Material costs have also stabilized at higher levels than in previous years. That means homeowners should expect pricing to reflect quality labor and materials rather than temporary spikes. Theodore Labonte often advises clients to plan ahead and build flexibility into their timelines to avoid unnecessary stress.
What This Means for Homeowners in 2026
Contractor optimism doesn’t mean projects will be instant or inexpensive, but it does show the remodeling market is steady. Homeowners considering renovations in 2026 should keep a few things in mind:
- Start planning early to secure preferred timelines
- Get clear, detailed estimates before going forward
- Expect longer lead times for specialized trades
- Focus on upgrades that improve long-term livability and value
With careful planning and realistic expectations, home remodeling remains a strong option for homeowners looking to invest in their property.
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