Story By Tracy Dickinson | August 2026
Although the remodeling industry seldom sees the same ups and downs as the new construction or real estate markets, both of those market segments can have a ripple effect when it comes to remodeling. In the past few years, while remodelers have remained busy, most have acknowledged a more cautious attitude on the part of homeowners planning new projects.
Earlier this spring, National Association of Home Builders economist Danushka Nanayakkara-Skillington observed that despite some concerning statistics in the housing industry, the remodeling segment remains a bright spot.
“On the whole, the U.S. has an aging inventory and an aging pool of home owners,” she said (see “Housing Is Life,” April 2026). “Both of those will result in resale and remodel activity. And the large number of Americans working from home will also have an impact on those markets.”
Halfway through 2026, that remains to be seen. Homeowners are contemplating projects, and remodelers are seeing steady inquiries, but area professionals have had to adapt to that cautious attitude in a variety of ways.
Seth Arganbright
Woodharbor Kitchen & Bath | General Manager
Throughout 2025, slower decision-making plagued most potential remodeling clients, and that has continued into 2026, says Woodharbor’s Seth Arganbright.
“There’s definitely more hesitation on the part of clients than there used to be,” he says. “I’m not sure what’s causing that, whether it’s general economic concern or hope that interest rates will drop. Even with that, last year ended better than 2024.”
Arganbright says he found that prices were more of a factor with clients than interest rates were, including the price of new construction. “It may not have a direct effect, but there’s definitely a trickle-down component in the way the new home market affects remodeling.”
Even though 2025 closed better than 2024, Woodharbor recognized that homeowner hesitation could potentially slow activity. The company has taken on some commercial remodel projects for long-term clients, which has helped the company meet sales expectations.
“We’ve always worked with clients to be budget-conscious. But a few years ago, we saw the concern from clients about rising material and product costs, so we have made budget an even higher priority,” says Arganbright. “We also introduced a budget-friendly line of cabinetry, and that has been popular with clients.”
He’s seeing a nice variety in the types of finishes and cabinetry styles that homeowners choose, from stain to paint and white oak to warmer browns.
However, walking homeowners through their options involves more than just price. Arganbright says it’s important to consider quality of life and cost-efficiency, too.
“We do a lot of kitchens and baths. Heated bathroom floors are one of the features everyone wants, but they assume it’s a luxury that’s too expensive,” he says. “They’re so much more cost-effective than people realize, and most of our clients end up including them because of that.”
The decision to commit to a remodel may be slower in the making, but Arganbright says that does give homeowners the opportunity to be more prepared with design ideas. And based on the number of inquiries Woodharbor sees, he anticipates there’s a significant amount of pent-up demand. “I kind of expected that pent-up demand to break this year. But I think uncertainty about market factors like the economy and the situation internationally have pushed that back.”
While he recognizes the reasons homeowners might hesitate, he says waiting isn’t always the best decision. “We live in an uncertain world. Things don’t get less expensive over time, so waiting for the perfect time or for the market to change usually means spending even more. You can spend your life waiting, or you can create the life you want now.”
Arganbright says it’s important to look at the big picture, not just the current activity. “When you look at the long-term perspective, you have to be optimistic. The demand for remodeling doesn’t go away even if new construction slows down. Homes age. There will always be maintenance, upkeep, or updates to be done.”
Seth Arganbright | General Manager
Woodharbor Kitchen & Bath | WoodharborDesMoines.com
Kim Hinkhouse
Design2Build | Co-Owner
Just as during last year, 2026 has continued the slower decision-making pace for remodelers, but Design2Build’s Kim Hinkhouse says the strong close to 2025 was an encouraging sign. “The first two quarters last year, clients were more reluctant to commit, but as we moved into Q3, things picked up and even kept up through the holidays.”
Despite concerns that 2025 would be slow, the year ended at about the same volume as 2024. That improved pace carried over into the beginning of this year and has stayed steady for Design2Build.
“We expected to see the same historical pattern, where the first quarter of the year inquiry activity is a little quieter,” says Hinkhouse. “But it’s been strong throughout the year. We’ve seen a lot of inquiries.”
Like they did last year, clients are taking their time with the decision-making process, Hinkhouse says a number of factors continue to play into that, including conflicting predictions about interest rates and a general sense of concern about the volatility of the real estate market as a whole.
On the other hand, the Des Moines metro has a significant inventory of aging homes. Hinkhouse says that’s good for remodelers. Caution about interest rates and the current economy may also be benefiting the remodeling market.
“The lack of change in interest rates is actually keeping people in place who might otherwise consider moving,” she says. “Kitchens, baths, and main-floor remodels remain our bread and butter because of that.”
While clients are often motivated by a desire to update their living space, Hinkhouse says finding a balance between “updated” and “trendy” is key. “We try to stay away from anything too trendy. We want to stay true to the style of the home and reflect the taste of the homeowner. Ultimately, the goal is to achieve a remodel that you can’t date specifically.”
In addition to the bread-and-butter typical indoor projects, Hinkhouse says Design2Build is doing more outdoor spaces as well. “Clients are looking for ways to create a more climate-controlled outdoor living space, and the products available now make that more possible, whether it’s screens, roofs, or heaters,” she says. “The outdoor space has really become an extension of the home; it feels more like another room.”
As the 2026 third quarter gets well underway, Hinkhouse says she expects the rest of the year to continue on a similar trajectory. “Although they’ve stabilized somewhat, labor costs have increased so that they’re a higher percentage of a project’s cost than they used to be. But in general, we’re optimistic about the remainder of 2026.”
Overall, Hinkhouse says the remodeling market has remained strong. “Things haven’t picked up dramatically, but we’re staying busy and inquiries are steady, so we’re optimistic. I expect 2026 to close out at least as strong as 2025.”
Kim Hinkhouse | Co-Owner
Design2Build | d2b.design
Devan Kaufman
Owner | Kaufman Construction
According to Devan Kaufman of Kaufman Construction, not much has changed from 2025, and that’s not necessarily a bad thing. “Folks are still more conservative with their decision-making, taking their time. But we’ve stayed busy, and 2025 closed out slightly better than anticipated.”
He says he’s no expert at reading economic trends. But after 27 years in the remodeling business, Kaufman recognizes the cyclical nature of the industry. “I think COVID taught us that not being prepared for the busy years is just as challenging as not being prepared for the slowdowns. No matter what people predict, it’s not long before the opposite happens. I just focus on being intentional about the quality of our work and the level of care we put into each job.”
So much of Kaufman’s clientele comes from repeat customers and word of mouth that it’s clear his approach is working. Even so, as the industry slowed down the past couple of years, Kaufman Construction put even more effort into marketing.
“We do some advertising, but we work really hard at building relationships,” Kaufman says. “Keeping in touch with former clients and potential clients, whether it’s through our newsletter or other events, goes a long way to maintaining that relationship. But the best marketing we can do is consistently doing good work, and that’s our priority whether the market is busy or slower.”
Like other area remodelers have found, Kaufman says the majority of his company’s projects are kitchens and baths. Those often lead to additional work, either for the same client or through referrals.
“We’ve had a big project this summer for a long-term client who’d done many projects, large and small, and kept putting off the kitchen remodel,” he says. “The client finally decided it was time, and it turned out to be a multi-space project to make the main floor more functional. We’re reworking the kitchen and a mudroom-laundry room-pantry and doing a screen porch and large patio, too.”
Kaufman Construction has gained a reputation for building outdoor spaces. He says that may be because he’s always seen them as extensions of the interior space. “Living space doesn’t stop at the door. Clients don’t want just a deck added to the back of the house. They want a true living space that extends the feel of the home and takes advantage of the outdoors.”
Kaufman says as a small business owner, he’s never spent a lot of time gauging world markets or economic activity. So far, that has served the business well, even when clients are slower to get going.
“I’m not sure I’d change anything about the way we do things based on somebody else’s economic predictions,” he says. “I’m still cautiously optimistic. People do seem to be waiting for something to change—good or bad—just so they know which direction things are going. But that’s out of my control. We just focus on doing really good work, and one project often leads to another.”
Devan Kaufman | Owner
Kaufman Construction | KaufmanConstruction.com
Tom Monson
Owner | Home State Builders
When the remodeling market began to slow slightly in 2024 and 2025, Home State Builders’ Tom Monson says his company increased its online activity to have a larger presence in front of potential clients. That has continued to be an emphasis in 2026.
“Although I’m not really where I’d like to be with our social media and online presence, we’ve seen an increase in inquiries and social media responses. That really seems to be the main avenue for a lot of our audience, both younger and older segments of the market,” Monson says.
As 2025 came to a close, he says it was a good year, but he anticipates better years in the near future.
“Interest rates still seem to be a problem for a lot of homeowners,” he says, which is causing some hesitation in starting projects. “I think the uncertainty of things in the Middle East is affecting the industry as a whole, and that adds to homeowners’ concerns. We’ve definitely seen a slow-down in the number of large projects getting started, but there’s been an uptick in smaller projects, which has kept us busy.”
Monson anticipates smaller projects will dominate the work load for a while. That means homeowners can make improvements without taking on a large budget.
“The associated gas and shipping prices from the unrest in the Middle East affect everything from food costs to deliveries and beyond,” Monson says. “This is a major factor for everyone. For homeowners considering a big remodeling project, it can create a lot of uncertainty, so I expect we’ll remain in this smaller project pattern until things are more stable.”
Outdoor spaces have been very popular for Home State this year. “Homeowners are really interested in upgrading their decks and creating true outdoor living spaces,” he says. “That’s given us the opportunity to showcase the variety of things we do at Home State Builders. Yes, we are an upscale remodeling contractor, but we also do siding, roofs, decks, basements, bathrooms, flooring, and more.”
As part of its increased online presence, Home State has begun sharing more before and after photos of these types of projects. “That way we can not only highlight our work, but potential clients can see what a difference even a smaller project can make,” says Monson. “And color trends are changing from grays to warmer neutrals, which is long overdue. This has been nice to highlight in our before and after photos too.”
He believes the central Iowa remodeling market will remain cautiously optimistic unless something significant changes in the larger market. But he says the current slower pace is actually a great opportunity for clients who are sitting on the fence.
“I feel like this is very much a buyer’s market,” he says. “Clients can capitalize on current costs and better schedules than we’ve had in previous years, so it’s a great time to start a remodel.”
Tom Monson | Owner
Home State Builders | HomeStateBuilders.com