What Does a Flat Remodeling Market Mean for Contractors?
The phone isn’t ringing like it did a few years ago. Homeowners are still fixing things. They’re just not doing big projects as often.
When the market stops growing, you don’t get more work by waiting. You get it by winning a bigger share. This page shows a remodeler or project manager how.
Dr. Paul Borosky, Business Consultant, has worked with 1,000+ small business owners in markets that went flat.
Talk to Dr. PaulCall or text (321) 948-9588.
Last Updated: November 2026
Real World Help From Dr. Paul
Home Remodeling Business Plan Template
A plan and a profit model for remodelers.
See the remodeling templateHow This Guide Works
Fast route: Doctor Owl’s answer and the 3 steps below. Story route: in Dr. Paul’s Fabled Forest Business School Series, Bella notices her kitchen remodel calls dried up, but her old clients still need small repairs nobody is asking them about. The example follows the trend.
- Pull a list of every client from the last three years.
- Call or text ten of them and ask if anything needs fixing or updating.
- Time how long it takes you to answer a new lead. Aim to cut it in half.
How Did Bella Find Work in a Slow Remodeling Market?
Big kitchen jobs used to fill Bella’s spring. This year, the calls slowed. Her crew had gaps on the schedule.
Doctor Owl asked, “Is this a fire, or a foundation?” Empty days on the schedule were a fire. Her list of past clients was the foundation. They used Dr. Paul’s Organize-Plan-Grow™ Strategy.
- Organize. Chuck pulled three years of past jobs. Over 60 families. Bella had only talked to a handful of them since.
- Plan. She called every one of them in a month. Many didn’t want a new kitchen. They wanted a leaky deck fixed or a bathroom updated.
- Grow. Bella now checks in with every past client twice a year. Chuck tracks how many jobs come from that list.
The jobs were smaller. There were a lot more of them.
What’s Happening to Remodeling Spending?
The Joint Center for Housing Studies of Harvard University tracks home improvement spending with its Leading Indicator of Remodeling Activity. Its October 2026 release expects annual spending to stay relatively flat through late 2027.
The center projects spending of about $524 billion in late 2026 rising only to about $527 billion by the third quarter of 2027, with growth slowing from about 2.4% to about 1.5%. That’s a forecast, and it can change.
Forecast, not a result. Source: Joint Center for Housing Studies of Harvard University, LIRA (October 2026).
What Does a Flat Market Mean for Your Company?
If the overall pie isn’t growing, one remodeler’s gain is another’s loss. The contractors who grow are the ones who follow up, answer fast, and make it easy to say yes.
Smaller jobs matter more. A homeowner holding off on a big remodel still has things that need fixing.
How Do You Win More of a Flat Market?
- Work your past client list. They already trust you. Most contractors never call them again.
- Answer leads fast. The first remodeler to call back often wins the job.
- Offer smaller packages. Repairs, updates, and one-room projects keep the crew busy.
- Ask for reviews. Homeowners check them before calling.
- Track where jobs come from. Put your effort where the work actually starts.
What Is a Past Client List Worth?
Illustration only. Round numbers, not a real company.
Say you call 60 past clients and one in ten books a repair or small update. That’s six jobs you didn’t have to find, from people who already like your work. Do it twice a year and it adds up to a steady stream.
Competing with bigger firms? The QBP lesson on competing against larger contractors helps. Plan your year with the home remodeling business plan template, or the construction business plan template for general contractors.
Want Help Filling the Schedule?
Bring your past client list, even if it’s messy, to a free 15-minute call with Dr. Paul. You leave with a simple follow-up plan, and what more help would cost if you want it.
Or call or text (321) 948-9588.
What Do Remodelers Ask About a Slow Market?
Should I lower my prices to win more jobs?
Usually not. Faster follow-up and smaller packages win work without cutting your margin.
Is it worth taking small repair jobs?
Often yes. They fill gaps, keep the crew busy, and lead to bigger jobs later.
How often should I contact past clients?
Twice a year is a good start. A short, friendly check-in works.
About the Author
Dr. Paul Borosky, DBA, MBA, helps remodelers and contractors win more work in slow markets. His clients are in all 50 states and Canada.
Sources
- Joint Center for Housing Studies of Harvard University, Leading Indicator of Remodeling Activity (October 2026).