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The National Association of Home Builders (NAHB) is predicting an uptick in the construction of single-family housing and a greater increase in home remodeling for the next 12 months.

“While mindful of some weakening for the labor market, the economy remains in solid shape,” said Robert Dietz, the association’s chief economist. “NAHB is forecasting a slight gain for single-family home building and sales and a larger gain for remodeling in 2026, after a disappointing 2025.”

Dietz noted the NAHB/Wells Fargo Housing Market Index showed “three months of positive readings for future sales conditions” by the end of while the NAHB/Westlake Royal Remodeling Market Index ended the year in “positive territory.”

“Future Fed monetary policy easing and possible productivity gains will be helpful for housing demand as the year progresses,” Dietz said, adding the Trump administration’s delayed tariffs on certain furniture and cabinet imports until 2027 should “help home sales and remodeling demand in 2026.”