The NAHB/Westlake Royal Remodeling Market Index (RMI) for the third quarter of 2025 was 60, up one point from the previous quarter.
With a reading of 60, the RMI stays solidly in positive territory above 50, although lower than it was at any point from 2021 to 2024.
Overall, remodelers are still positive about the market, albeit slightly less bullish than they were at this time last year.
The most major challenges they face are high material and labor costs, as well as economic and political instability, which makes some of their potential clients hesitant to move forward with renovation projects.
The slight quarter-over-quarter increase in the RMI is consistent with flat construction spending trends and the present wait-and-see market situation.
Remodeling spending is expected to rise in the future, owing to an aging housing stock and increases in household net worth.
The RMI is based on a poll where remodelers rank several characteristics of the residential remodeling industry as “good,” “fair,” or “poor.” Responses to each question are transformed into an index that ranges from 0 to 100.
An index number greater than 50 suggests that a greater proportion of respondents think conditions are favorable rather than bad.
Current Conditions
The Remodeling Market Index (RMI) is the average of two key component indices: the Current Conditions Index and the Future Indicator Index.
The present Conditions Index is an average of three subcomponents: the present market for big renovation projects ($50,000 or more), medium-sized projects ($20,000 to $49,999), and small projects (under $20,000).
In the third quarter of 2025, the Current Conditions Index averaged 68, up two points from the previous quarter.
All three components rose quarter after quarter and remained over the break-even mark of 50.
Moderately sized projects increased by four points to 70, huge projects by two points to 64, and tiny renovation projects by one point to 71.
Future indicators
The Future Indicators Index is the average of two subcomponents: the present rate of lead and inquiry generation and the existing backlog of renovation projects.
In the third quarter of 2025, the Future Indicators Index averaged 52, one point higher than the previous quarter.
The component indicating the backlog of renovation jobs also grew by four points to 56.
However, the component reflecting the current pace at which leads and inquiries are received declined two points from the previous quarter, going into negative territory at 49.
Please visit NAHB’s RMI web page to view the whole set of RMI tables, including regional indices and a comprehensive history for each RMI component.
[Read more about this topic on Eyeonhousing.org]