According to the National Association of Home Builders, remodeling continues to lead the housing industry, surpassing both single-family and multifamily construction. The third-quarter Remodeling Market Index (RMI) registered a stable reading of 62, reflecting a one-point increase from the prior quarter.
The RMI has remained between 59 and 70 for the past four years. Remodelers rate various aspects of the residential remodeling market as “good”, “fair,” or “poor” on a scale from 0 to 100, with an index number above 50 indicating a higher proportion of respondents view conditions as good rather than poor.
NAHB Chief Economist Robert Dietz said 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. He noted that labor shortages are extending the time it takes to complete projects, but remodeling is gaining share in the overall construction market due to its limited sensitivity to higher interest rates.
Read Also: Median Remodeler Revenue Up 24% in 2025
The Current Conditions Index averaged 70, unchanged for the third consecutive quarter. The component measuring large remodeling projects ($50,000 or more) increased two points to 66, while the component measuring moderately sized projects ($20,000 to $49,999) decreased two points to 71.
NAHB Remodelers Chair Elliott Pike said remodeler sentiment remained stable in the third quarter, although some remodelers report issues with high material costs and labor shortages. The Future Indicators Index averaged 54, up two points from the previous quarter, with increases in the backlog of remodeling jobs and the current rate of leads and inquiries.