Business Data & Benchmarks · United States

Residential Remodeler Revenue Benchmark

General remodeling and additions on existing homes.

NAICS 236118, 2022 editionUnited States data by defaultSources and dates shown

Average Residential Remodeler Revenue per Year 2022 Economic Census

The 2022 Economic Census records the combined receipts of residential remodeling businesses with paid employees and how many establishments reported them. The average below is one divided by the other.

≈$1,010,000 /year

Average annual gross revenue per employer establishment

128,187

Employer establishments in the United States, 2022

as published $129.1 billion

Combined annual gross revenue of employer establishments, 2022

How this is calculated: about $129.1 billion in combined annual revenue divided by 128,187 employer establishments works out to $1,010,000. This is an average per establishment, and averages get pulled up by large, busy operations, so a typical business may sit below it.

Scope: Residential Remodelers (NAICS 236118). Census counts establishments whose primary work is remodeling and additions on existing homes, including general remodelers who subcontract the trades. Employer establishments only: owner-operated businesses with no paid employees are not in these figures.

A general remodeler usually signs for the whole job and then buys most of it back out: framing, electrical, plumbing and finishes are commonly subcontracted, so the receipts recorded here include money that passes through to other trades. That makes this a wide revenue figure, because a remodeler bills subcontracted work through the same receipts line as its own labor.

Receipts include subcontracted work billed through the remodeler, so the figure is not a measure of the work performed in-house. The Census data do not separate the two.

Source US Census Bureau, 2022 Economic Census, Summary Statistics (ECNBASIC): ESTAB, RCPTOT and PAYANN by NAICS · Vintage 2022 Economic Census · Calculation BusinessNES · Accessed July 2026

Where these figures come from
Establishment counts and combined receipts are published figures from the official source named in each figure's source line. BusinessNES divides one by the other and rounds to the nearest $10,000; no other adjustment is made. The full chain from published figure to this page is described on the methodology page.

Data Source Notice

This product uses the Census Bureau Data API but is not endorsed or certified by the Census Bureau.

Figures above are from the 2022 Economic Census reference year, released by the Census Bureau in 2024 and 2025; markets have moved since.

Employer Establishments at Year Five Industry group

Residential Building Construction, NAICS 2361, the 2018 starting count compared with the count of five-year-old establishments in 2023.

47.8%the year-five count as a share of the starting count

Five-year establishment continuation benchmarkLine chart of industry continuation: 69.9 percent at 1 year, 59.8 percent at 2 years, 56.3 percent at 3 years, 52.1 percent at 4 years, 47.8 percent at 5 years. 19,423 establishments first reported paid employment in 2018; BusinessNES calculation from Census BDS.100%75%50%25%0%2014-2018 cohort range: 42.7 to 48.1 percentStart: 100 percent, the starting count1 year: 69.9 percent of the starting count2 years: 59.8 percent of the starting count3 years: 56.3 percent of the starting count4 years: 52.1 percent of the starting count5 years: 47.8 percent of the starting count69.959.856.352.147.8Start1 year2 years3 years4 years5 years19,423 establishments first reported paid employment in 2018; BusinessNES calculation from Census BDS.
Five years on, this industry group counted about 48 establishments aged five for every 100 that first reported paid employment in 2018. Census compares counts by age rather than following the same businesses, so read it as a broad continuation indicator for the industry group, not as a tracked survival rate.

Across the 2014 to 2018 cohorts, five-year results ranged from 42.7 to 48.1 percent. This benchmark covers Residential Building Construction, NAICS 2361, as a whole. It is not a survival rate for residential remodelers on their own: they are 128,187 of the 205,642 employer establishments in that group, about 62 percent of it. How this is measured

Payroll as a Share of Revenue Official data

Payroll covers the remodeler's own crew and office, not the subcontractors invoiced through the job.

Cost lineShare of receipts
Annual payroll share of receipts, United States≈18%

Payroll share of receipts, Residential Remodelers, United States, 2022 Economic Census.

Approximately 18.0 percent of every revenue dollar in this category goes to annual payroll. As the census defines it, payroll includes wages, salaries, reported tips, commissions and bonuses; it excludes employer-paid benefits, employer payroll taxes, contractor payments and owner compensation. Treat it as one verified anchor, not a full labor cost breakdown. The payroll share here is small for a construction business, which is consistent with a model that buys trade labor rather than employing all of it.

This is not total labor cost or profit margin.

How to read this number
Payroll here is the census annual payroll figure, PAYANN: it includes wages, salaries, reported tips, commissions and bonuses paid to employees, and it excludes employer-paid benefits, employer payroll taxes, contractor payments and proprietor compensation. BusinessNES divides it by the same category total receipts, RCPTOT, and rounds to a whole percent.

Position Within Its Comparison Group Computed from official data

Where this category sits among 4 residential building construction categories in the same 2022 Economic Census release. Ranks and the group median are computed on exact values, before the rounding used above.

MeasureThis categoryGroup medianRank
Revenue per employer establishment$1,007,242$8,373,9554 of 4
Payroll share of receipts18.09%9.79%1 of 4
Employer establishments128,18736,727.51 of 4

Position among 4 residential building construction categories, 2022 Economic Census, employer establishments only.

This category ranks 4th of 4 by average annual revenue per employer establishment. It ranks 1st of 4 by employer establishment count and 1st of 4 by payroll share. Payroll equals 18.09 percent of receipts here, 8.30 percentage points above the group median of 9.79 percent. A higher or lower position is not a measure of profit or of business quality: the census reports receipts and payroll only.

Compared With Similar Business Types Computed from official data

The 3 categories closest to this one by average revenue inside the same comparison group.

Census categoryRevenue per establishmentPayroll shareEstablishments
Residential Remodelers (this page)$1,007,24218.09%128,187
New Single-Family Housing Construction (except For-Sale Builders)$2,161,45311.26%54,490
New Housing For-Sale Builders$14,586,4575.88%18,965
New Multifamily Housing Construction (except For-Sale Builders)$19,463,0138.31%4,000

Nearest categories by average revenue, 2022 Economic Census, employer establishments only.

This category reports lower revenue per employer establishment than every category shown here: New Single-Family Housing Construction (except For-Sale Builders), New Housing For-Sale Builders and New Multifamily Housing Construction (except For-Sale Builders). It contains more employer establishments than all three of them. Every figure in this table comes from the same 2022 Economic Census release and the same employer establishment population, so the columns are directly comparable.

Beyond the Benchmark BusinessNES analysis

What the census figures leave out about residential remodelers, and what to look at instead.

What the numbers do not show

The receipts here include work bought back out to trades, so a remodeler who subcontracts everything and one who self-performs half the job can report the same revenue while running completely different businesses.

Nothing in the data shows the backlog. In remodeling, the signed work waiting to start is a better description of the company's health than the revenue it recorded last year.

Operator lens

  • Cash flow gaps can end a remodeler even while margins look acceptable on paper, and often both problems arrive together. Deposits, draw schedules and supplier terms decide whether a profitable job is survivable while it is being built.
  • The low payroll share above is a structural signal. It reflects a model that buys trade labor rather than employing it, which lowers fixed cost and raises dependence on subcontractor availability.

Questions to ask before starting or buying

  • What does the backlog look like and is it signed? Ask for contracted work by start date, not for a pipeline of conversations.
  • How are change orders handled? Change orders are where remodeling margin is won or lost, and a company without a written process usually absorbs them.
  • Which trades are reliable and are they exclusive? A remodeler is only as good as the electricians and plumbers who answer the phone, and those relationships rarely transfer automatically.
  • What is the warranty and callback record? Ask how long after completion the company is still returning to a job, and who pays for it.
  • Where does the work come from? Referral-driven companies enjoy low acquisition cost, and many run without a formal marketing system, an advantage that lasts until the owner leaves.

Sources and Methodology

Every figure on this page is bound to a published source, and each figure's own source line names that source precisely: the 2022 Economic Census for counts, receipts and payroll, and the Census Bureau's Business Dynamics Statistics for the industry continuation benchmark. Where a page shows a sector survival curve instead, that series comes from the Bureau of Labor Statistics.

BusinessNES performs the arithmetic on those published figures and nothing else. Receipts are divided by establishments, and payroll by receipts. The age-five establishment count is divided by the age-zero establishment count for the same four-digit industry group, then repeated across five age-zero cohorts to give a reference and a range. This category's share of its industry group, along with the ranks, medians and nearest peers in the comparison sections, comes from the same published tables. Every one of them is recomputed from the sealed source files at each release and blocks publication if it does not match. Results are rounded and marked approximate. The reference year is 2022 for revenue and payroll; treat every figure as a baseline, not today's market.

Category scope matters: these figures cover Residential Remodelers (NAICS 236118), employer establishments only. The scope note near the top of the page explains what that includes and excludes for this business type. New single family construction is a separate Census category from remodeling.

Full method, sources and limits
The methodology page describes the full chain for every figure on this site: the published source, the sealed snapshot it was read from, the exact calculation if BusinessNES performed one, and the honest limits of scope and vintage. Read the methodology.

Spotted an error? Corrections are logged and published. Business data and benchmarks by BusinessNES.