If you own or operate a construction remodeling business and need your NAICS code, here is your answer right away.
The primary NAICS code for a residential remodeling contractor is 236118, classified under New Single-Family Housing Construction (except Operative Builders) in the Construction sector. While the official title of this code mentions “new” construction, the federal government explicitly bundles residential remodeling into this exact same classification. However, “remodeling” is a broad term. The right code for your business depends on whether you remodel houses or commercial buildings. This page covers the relevant codes so you can identify the one that fits.
| Field | Details |
|---|---|
| NAICS Code | 236118 |
| Industry Title | New Single-Family Housing Construction (except Operative Builders) |
| Sector | 23 (Construction) |
| Industry Group | 236 |
| Last Updated | 2022 NAICS Edition (Next NAICS Edition will come in 2027) |
What Does NAICS Code 236118 Cover?
According to the official 2022 NAICS data, code 236118 covers establishments primarily engaged in building, or remodeling, single-family residential buildings.
In simple terms, this code applies to general contractors who manage and execute structural changes to residential homes. For construction remodeling businesses, this includes:
- Whole-home remodels and gut renovations
- Room additions and structural expansions
- Converting garages or basements into living spaces
- Re-roofing, re-siding, or major structural repairs on existing homes
- Acting as the general contractor for a residential renovation project (hiring and managing subcontractors like plumbers and electricians)
The important distinction here is residential general contracting. This code covers the overall management and structural execution of home remodeling projects. It does not cover the individual specialized trades (like a plumber just fixing a pipe, or an electrician upgrading a panel), nor does it cover commercial building renovations.
Does My Remodeling Business Qualify for Code 236118?
Your business qualifies for NAICS code 236118 if:
- You are a general contractor overseeing residential remodeling projects from start to finish
- Your main source of revenue comes from altering, reconstructing, or adding to single-family homes
- You pull building permits for residential structural work
Your business may not qualify if:
- You remodel commercial buildings (like offices, retail spaces, or restaurants), which falls under 236210 (Commercial and Institutional Building Construction) instead
- You only perform a single specialized trade (like just doing the flooring, painting, or HVAC), which falls under 238 (Specialty Trade Contractors) instead
- You do minor home repairs or handyman work that does not require major structural permits, which may fall under 238990 (All Other Specialty Trade Contractors) instead
When your business sits between two codes, always classify based on whichever activity generates the most revenue.
Where Will You Need This Code?
Your NAICS code appears in more places than most contractors expect. Here is where code 236118 will be required:
- Construction Insurance. This is highly critical for remodelers. Insurance providers use this code to calculate your General Liability and Builders Risk premiums. Residential remodeling carries significant physical risks, and an incorrect code could leave you with coverage gaps if a worker damages a client’s property.
- Building Permits. Most city and county building departments require your NAICS code or contractor license number when you apply for a remodeling permit.
- SBA Loan Applications. If you need a line of credit to purchase materials or a loan to buy work trucks and heavy equipment, the Small Business Administration requires your NAICS code to assess your industry risk profile.
- Federal Contracting via SAM.gov. If you want to bid on government contracts to renovate military housing or federal buildings, you must be registered on SAM.gov under the correct construction code.
- Business Bank Accounts. Many banks ask for your NAICS code when opening a business checking account to ensure your business is classified properly from day one.
236118 in the NAICS Hierarchy
Every NAICS code sits inside a structured hierarchy. Here is exactly where 236118 fits:
| Level | Code | Title |
|---|---|---|
| Sector | 23 | Construction |
| Subsector | 236 | Construction of Buildings |
| Industry Group | 2361 | Residential Building Construction |
| NAICS Industry | 23611 | Residential Building Construction |
| National Industry | 236118 | New Single-Family Housing Construction (except Operative Builders) |
Frequently Asked Questions
Why does the code for residential remodeling say “New Single-Family Housing Construction”?
This is one of the most common points of confusion for contractors. The federal government groups residential general contractors together based on the type of structure they work on, rather than separating new builds from remodels. Because the same contractors often do both, the 2022 NAICS system explicitly includes residential remodeling, additions, and alterations under the 236118 code.
What if I only remodel kitchens and bathrooms?
It depends on your role. If you are the general contractor who rips out walls, moves plumbing, and manages the entire project, you use 236118. However, if you are a specialized subcontractor who only installs cabinets or tile (and doesn’t handle the structural or mechanical aspects of the home), you should use a Specialty Trade Contractor code under Sector 238, such as 238330 (Flooring Contractors) or 238350 (Finish Carpentry Contractors).
Is there a separate NAICS code for home additions?
No. In the 2022 NAICS system, adding a room to an existing house is considered a structural alteration. It is grouped directly under residential remodeling and falls under 236118.
Does this code cover commercial remodeling?
No. If your construction business remodels office buildings, retail stores, restaurants, or warehouses, you must use 236210 (Commercial and Institutional Building Construction). The government strictly separates residential and commercial building codes because the materials, safety regulations, and risk profiles are entirely different.
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