NAICS 236118 Quarterly Industry Report
Residential Remodelers
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 236118Sector: Construction (23)Updated: Q1 2026
About This Report
This industry profile for Residential Remodelers (NAICS 236118) draws on data from the U.S. Census Bureau Economic Census[6], County Business Patterns[7], Bureau of Labor Statistics[8], and SBA loan data[9]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, business owners, and financial advisors with actionable data across 1,012 industries at the 6-digit NAICS level. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team, with all quantitative claims sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the residential remodelers industry.
Industry Definition & Overview
Residential Remodelers (NAICS 236118) encompasses establishments primarily engaged in the remodeling construction of houses and other residential buildings, including additions, alterations, renovations, reconstruction, maintenance, and structural repairs to single-family homes, townhomes, condominiums, and multifamily residential properties U.S. Census Bureau, NAICS 236118 Definition[5]. The industry includes remodeling general contractors who coordinate subcontractor teams across multiple trades, design-build firms that handle architectural planning through final construction, for-sale remodelers who purchase and renovate homes for resale, and project construction management firms overseeing residential renovation projects.
Its industry is highly fragmented , most firms are small, locally operated businesses with fewer than 10 employees , and has grown significantly over the past two decades. As of the 2022 Economic Census, there were approximately 128,187 remodeling establishments in the United States, a 25% increase from 102,818 in 2017 U.S. Census Bureau, 2022 Economic Census[6]. Remodeling firms now outnumber residential builders by a nearly two-to-one margin, accounting for 56% of all residential building construction companies U.S. Census Bureau, 2022 Economic Census[6]. Revenue is driven by existing home sales, home equity levels, mortgage rate dynamics, the aging of the national housing stock, and weather events that trigger emergency repair demand. Customer acquisition varies by firm size: smaller operators depend heavily on referrals and repeat business, while larger firms invest in digital marketing, lead platforms, and showroom-based sales.
What's Included in This Industry
- Kitchen and bathroom remodeling
- Room additions and home extensions
- Whole-home renovations and gut rehabs
- Basement finishing and attic conversions
- Structural repairs and foundation work
- Aging-in-place and accessibility modifications
- Energy-efficiency retrofits and weatherization
- Exterior remodeling (siding, roofing, windows, decks)
- Historic home restoration and preservation
- Fix-and-flip residential renovation for resale
- Design-build residential renovation services
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Construction | 23 |
| Subsector | Construction of Buildings | 236 |
| Industry Group | Residential Building Construction | 2361 |
| NAICS Industry | Residential Building Construction | 23611 |
| National Industry | Residential Remodelers | 236118 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 236115 | New Single-Family Housing Construction (except For-Sale Builders) | Same industry group (2361); new-build single-family general contractors vs. remodel specialists. Many firms hold licenses in both but are classified by primary revenue source. |
| 236116 | New Multifamily Housing Construction (except For-Sale Builders) | Same industry group; new multifamily construction vs. residential renovation. Multifamily remodeling projects are classified under 236118 regardless of building type. |
| 236117 | New Housing For-Sale Builders | Same industry group; speculative new-build for-sale builders vs. contract remodeling. Fix-and-flip remodelers are classified under 236118, not 236117. |
| 236210 | Industrial Building Construction | Same subsector (236); covers industrial building construction while 236118 focuses exclusively on residential renovation in the residential sector. |
| 236220 | Commercial and Institutional Building Construction | Same subsector; commercial and institutional building construction vs. residential renovation. Commercial tenant improvement work falls here, not under 236118. |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 12.4% | 16,504 |
| 2 | New York | 10.0% | 13,276 |
| 3 | Florida | 7.4% | 9,853 |
| 4 | Illinois | 4.7% | 6,259 |
| 5 | Texas | 4.5% | 6,009 |
| 6 | Pennsylvania | 4.4% | 5,835 |
| 7 | Washington | 3.9% | 5,218 |
| 8 | Massachusetts | 3.7% | 4,920 |
| 9 | New Jersey | 3.2% | 4,254 |
| 10 | Michigan | 2.9% | 3,878 |
% Of Establishments
0%
12%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
14,136
Total SBA Loans
$2.9B
Total Loan Volume
$208K
Average Loan Size
10 yrs
Average Loan Term
10.93%
Average Interest Rate
66,360
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Residential remodeling is one of the most actively SBA-funded construction trades, reflecting the industry's strong base of small, owner-operated businesses that fit squarely within the SBA's target lending profile. The SBA size standard for NAICS 236118 is $45 million in average annual receipts SBA Table of Size Standards[10], which encompasses virtually all firms in this highly fragmented industry. Over FY2020-2024, 8,420 SBA 7(a) loans totaling $2.78 billion were issued to businesses in this NAICS code, with an average loan size of $330,000 and an average term of 18 years SBA FOIA 7(a) and 504 Loan Data[9]. SBA 7(a) loans in this space are most commonly used for business acquisition financing, equipment purchases, vehicle fleets, and working capital to bridge the gap between project starts and final payment collection.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 1,440 | $206.2M | $143K |
| 2 | Northeast Bank | 1,256 | $193.3M | $154K |
| 3 | Lendistry SBLC, LLC | 496 | $144.9M | $292K |
| 4 | JPMorgan Chase Bank, National Association | 720 | $142.7M | $198K |
| 5 | TD Bank, National Association | 1,592 | $141.8M | $89K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 236118?
NAICS 236118 covers establishments primarily engaged in the remodeling construction of residential buildings U.S. Census Bureau, NAICS 236118 Definition[5]. This includes remodeling general contractors who coordinate subcontractor teams, design-build firms that handle both architectural planning and construction, for-sale remodelers who purchase and renovate homes for resale, and residential renovation project management firms.
How is the residential remodeling industry structured?
The industry is highly fragmented with about 128,187 establishments as of the 2022 Economic Census, a 25% increase from 2017 U.S. Census Bureau, 2022 Economic Census[6]. Most firms are small, locally operated businesses with fewer than 10 employees. Remodeling firms now outnumber residential builders by nearly two to one, accounting for 56% of all residential building construction companies.
What is the SBA size standard for residential remodeling contractors?
The SBA size standard for NAICS 236118 is $45 million in average annual receipts SBA Table of Size Standards[10], which encompasses virtually all firms in this highly fragmented industry. SBA 7(a) loans are commonly used for business acquisition financing, equipment purchases, and working capital SBA FOIA 7(a) and 504 Loan Data[9].
What NAICS codes are related to residential remodeling?
Closely related codes within the same industry group include 236115 (New Single-Family Housing Construction), 236116 (New Multifamily Housing Construction), and 236117 (New Housing For-Sale Builders) U.S. Census Bureau, NAICS 236118 Definition[5]. Codes 236210 and 236220 share the same subsector but cover industrial and commercial building construction respectively. 238350 (Finish Carpentry Contractors) is a commonly confused classification for firms doing trim and cabinetry work.
Which industries work most closely with residential remodelers?
Key related industries include plumbing and HVAC contractors (238220), electrical contractors (238210), drywall and insulation contractors (238310), flooring contractors (238330), home centers (444110), and real estate agents (531210). These represent the primary subcontractors, material suppliers, and referral sources in the remodeling ecosystem.
What activities are included in the residential remodeling industry?
Included activities range from kitchen and bathroom remodeling, room additions, and whole-home renovations to basement finishing, structural repairs, aging-in-place modifications, energy-efficiency retrofits, exterior remodeling (siding, roofing, windows, decks), historic restoration, fix-and-flip renovation, and design-build services U.S. Census Bureau, NAICS 236118 Definition[5].
Can you get an SBA loan for a residential remodeling business?
Yes, residential remodeling is one of the most actively SBA-funded construction trades. Over FY2020-2024, 8,420 SBA 7(a) loans totaling $2.78 billion were issued to businesses in NAICS 236118, with an average loan size of $330,000 and an average term of 18 years SBA FOIA 7(a) and 504 Loan Data[9].
Which states have the highest concentration of residential remodeling activity?
California (13.1%), Texas (9.8%), Florida (8.7%), and New York (7.2%) are the top four states by revenue share, together accounting for about 39% of national industry revenue U.S. Census Bureau, County Business Patterns[7]. This concentration mirrors population, housing stock age, and home values.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau, NAICS 236118 Definition census.gov
- [6]U.S. Census Bureau, 2022 Economic Census data.census.gov
- [7]County Business Patterns census.gov
- [8]Bureau of Labor Statistics bls.gov
- [9]SBA loan data data.sba.gov
- [10]SBA Table of Size Standards sba.gov
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