The National Association of Home Builders’ NAHB Remodeling Market Index (RMI) for the third quarter posted a reading of 62, up one point compared to the previous quarter. The RMI survey asks remodelers to rate five components of the remodeling market as “good,” “fair,” or “poor.” Each question is measured on a scale from 0 to 100, where an index number above 50 indicates that a higher share view conditions as good than poor. The results of the RMI are seasonally adjusted.
“Remodeler sentiment remained stable in the third quarter, although remodelers in certain parts of the country continue to report issues with high material costs and finding enough labor to finish projects on time,” said NAHB Remodelers Chair Elliott Pike, a remodeler from Homewood, Ala. “Remodelers also report that economic uncertainty is making some potential customers hesitant to move forward with projects.”
The RMI’s Current Conditions Index is an average of three components: the current market for large remodeling projects, for moderately-sized projects, and for small projects. The Future Indicators Index is an average of two components: the current rate at which leads and inquiries are coming in and the current backlog of remodeling projects. The overall RMI is calculated by averaging the Current Conditions Index and the Future Indicators Index. Any number over 50 indicates that more remodelers view remodeling market conditions as good than poor.
The Current Conditions Index averaged 70 for the third quarter in a row, with all three components remaining well above 50, in positive territory. The component measuring large remodeling projects ($50,000 or more) increased two points to 66; the component measuring moderate remodeling projects (at least $20,000 but less than $50,000) fell two points to 71; and the component measuring small-sized remodeling projects (under $20,000) inched down one point to 73.
The Future Indicators Index averaged 54, up two points compared to the previous quarter. The component measuring the current rate at which leads and inquiries are coming in rose two points to 53, and the component measuring the backlog of remodeling jobs increased two points to 56.
“The third quarter reading of 62 for the RMI is consistent with NAHB’s projection for remodeling activity to remain stable in 2026 and grow slightly in 2027,” said NAHB Chief Economist Robert Dietz. “Labor shortages, exacerbated by immigration enforcement and competition from data center construction, are extending the time it takes to complete projects. Nevertheless, remodeling is gaining share in the overall construction market, as it is somewhat less sensitive than new construction to the current elevated interest rates.”
For the full RMI tables, visit nahb.org/rmi.
About the National Association of Home Builders
The National Association of Home Builders (NAHB) is a Washington-based trade association representing more than 140,000 members involved in homebuilding, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing, and other aspects of residential and light commercial construction. NAHB is affiliated with 700 state and local homebuilder associations around the country. NAHB’s builder members will construct about 80% of the new housing units projected for this year.
About NAHB Remodelers
NAHB Remodelers is America’s home for professional remodelers, representing the more than 53,000 members of the National Association of Home Builders (NAHB) who are involved in the remodeling industry. Founded in 1982, the organization provides information, education, and designation programs to improve the business and construction expertise of its members and to enhance the professional image of the industry. Its membership incorporates nearly 100 local councils across the nation.
 for the third quarter posted a reading of 62, up one point compared to the previous quarter. An index number above 50 indicates that a higher share view conditions as good than poor.){kind=link}