The National Association of Home Builders (NAHB) has released the NAHB Remodeling Market Index (RMI) for the third quarter, posting 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 Elliott Pike, NAHB Remodelers Chair. “Remodelers also report that economic uncertainty is making some potential customers hesitant to move forward with projects.”
“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 Robert Dietz, chief economist for NAHB. “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.”
The Current Conditions Index averaged 70 for the third quarter in a row. All three components remained 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.