Remodeler sentiment held steady in the third quarter, with the National Association of Home Builders (NAHB) Remodeling Market Index (RMI) rising one point from the previous quarter to 62. The survey asks remodelers to rate five market components as good, fair or poor, and a reading above 50 means more remodelers view conditions as good than poor. Results are seasonally adjusted.
The Current Conditions Index averaged 70 for the third quarter in a row. Within it, the component for large projects ($50,000 or more) rose two points to 66, moderate projects (at least $20,000 but less than $50,000) fell two points to 71, and small projects (under $20,000) slipped one point to 73.
The Future Indicators Index averaged 54, up two points. The rate at which leads and inquiries are coming in rose two points to 53, and the backlog of remodeling jobs increased two points to 56.
NAHB Remodelers Chair Elliott Pike, a remodeler from Homewood, Ala., said some remodelers still report high material costs and trouble finding enough labor, and that economic uncertainty is making some potential customers hesitant. NAHB Chief Economist Robert Dietz said the reading is consistent with NAHB’s projection that remodeling activity will stay stable in 2026 and grow slightly in 2027. He said labor shortages, exacerbated by immigration enforcement and competition from data center construction, are extending project timelines. He added that remodeling is gaining share of overall construction because it is somewhat less sensitive than new construction to elevated interest rates.
Why it matters
Homeowners planning projects may face longer completion times because of labor shortages. Contractors and agents can use the index to gauge demand across large, moderate and small remodeling jobs.
