During an upcoming webinar, NAHB Economist Eric Lynch, along with other economic forecasters and remodeling experts, will provide a mid-year remodeling update and discuss their near-term forecasts for the industry. In terms of new residential construction, Rob Dietz, SVP and chief economist of the NAHB, is forecasting an increase of 1% for single-family home building in 2026, rising to nearly 950,000 construction starts. Get exclusive insights into the key residential construction trends for 2026. Download our free report for the data-driven strategies you need to grow your business. Higher mortgage rates, worsening labor shortages and rising material costs are weighing on builder sentiment. Builder confidence in the market for newly built single-family homes fell three points to 32. The NAHB Construction Cost Survey highlights typical ranges for residential projects across the United States, with main cost drivers including labor rates, material prices, and regional differences. Participants gained valuable insights into the latest data and forecasts to help remodelers, builders, and housing professionals make informed business decisions for the second half of 2026 and beyond. In this edition we look at the remodeling industry outlook in the third quarter of 2026. Private residential construction spending rose for a third straight month in May, up 0.3% from April and 1.8% year-over-year. Remodel spending did most of the heavy lifting. Remodeling contractors remained optimistic in the second quarter of 2026 even as material costs and economic uncertainty delayed larger jobs, according to new data from the National. The price of materials is important, but it is only one of several factors creating housing affordability challenges in the U.S. Others include relatively high mortgage rates, shortages of skilled construction labor, and several different types of regulatory costs. These findings are consistent with historical trends reported by NAHB where bathroom, kitchen and whole house renovations have traditionally ranked as the top three project types undertaken by NAHB remodelers.