Profitability for residential remodelers reached its highest degree in additional than 20 years in 2024. Trade-wide revenue benchmarks are essential as a result of they permit firms to judge their monetary efficiency in context with the trade. Doing so can information useful resource allocation, budgeting, and goal setting for prices and expense traces, resulting in a extra profitable enterprise technique. This put up summarizes the outcomes from NAHB’s most up-to-date version of the Remodelers’ Value of Doing Enterprise Examine.
On common, residential remodelers reported $2.7 million in complete income for fiscal 12 months 2024. Of that, about $1.9 million (70.1%) was spent on value of gross sales (i.e., labor, supplies, contractors), which interprets into a median gross revenue margin of 29.9%. Working bills (i.e., oblique development prices, finance, S&M, G&A, and proprietor’s compensation) value remodelers a median of $646,000 (23.6% of income), leaving them with a median internet revenue margin of 6.3%.
Remodelers’ 29.9% common gross revenue margin in 2024 was a strong 5 proportion factors increased than in 2021, when the metric sank to a document low of 24.9%. The development was due largely to a major discount in commerce contractor prices, which dropped from 36% of income in 2021 to 30% in 2024. The common gross margin in 2024 (29.9%) marked a return to gross profitability ranges at par with 2018 (30.1%).
Efficiently decreasing their prices of gross sales improved remodelers’ backside line. In 2024, their common internet revenue margin (6.3%) was increased than in 2021 (4.7%) and 2018 (5.2%). It was additionally the best internet margin reported by remodelers since 1996 (6.8%).
The Value of Doing Enterprise Examine additionally tracks residential remodelers’ steadiness sheets. On common, they reported $668,000 in complete property on their 2024 steadiness sheets. Of that, $331,000 (50%) was financed by liabilities (both short- or long-term) and the opposite $337,000 (50%) by fairness builders held of their firms.
Historic knowledge present remodelers’ steadiness sheets expanded considerably in 2024, with common complete property ($668,000) up 34% in comparison with 2021 ($497,000). However maybe extra essential than fluctuations within the nominal dimension of their steadiness sheets, the info clearly level to remodelers deleveraging their companies within the final decade. In 2015, 68% of remodelers’ property had been financed by debt. By 2021, that share was all the way down to 49%, the place it remained primarily unchanged in 2024 (50%). Logically, the latter means remodelers are utilizing extra of their very own capital to run their firms, as illustrated by their fairness share rising from 33% in 2015 to 50% in 2024.
Extra particular knowledge about remodelers’ numerous value of gross sales traces (e.g., the share of income spent on supplies), working bills (e.g., how a lot homeowners had been paid as compensation), or forms of property (e.g., money) can be found within the official publication of the 2026 Remodelers’ Value of Doing Enterprise Examine.
