The NAHB/Westlake Royal Remodeling Market Index (RMI) reached 64 in the fourth quarter of 2025, up four points from the previous quarter.
Despite the typical seasonal downturn around the holidays, most remodelers are experiencing rather solid market conditions.
Rising prices and potential clients’ hesitancy owing to policy and economic uncertainties remain important barriers for the business.
An aging house stock, substantial homeowner equity, and an increased need for aging-in-place renovations all contribute to remodeling demand.
The RMI is based on a poll in which remodelers rated different characteristics of the residential remodeling industry as “good,” “fair,” or “poor.” The responses to each question are transformed into an index ranging from 0 to 100.
An index number greater than 50 implies that a greater proportion of respondents see conditions as favorable rather than poor.
Current Conditions
The Remodeling Market Index (RMI) is the average of two primary indices: the Current Conditions Index and the Future Indicators Index.
The present Conditions Index is an average of three subcomponents: the present market for major renovation projects ($50,000 or more), moderately sized projects ($20,000 to $49,999), and small projects (less than $20,000).
The Current Conditions Index averaged 71 during the fourth quarter of 2025, up three points from the previous quarter.
All three components climbed quarter after quarter and remained over 50, the break-even mark.
Large remodeling projects experienced the greatest increase, up five points to 69, followed by small remodeling projects, which up two points to 73, and moderately-sized projects, which increased one point to 70.
Future Indicators
The Future Indicators Index is an average of two subcomponents: the present rate of lead and inquiry generation, and the existing backlog of remodeling projects.
In the fourth quarter of 2025, the Future Indicators Index averaged 56 points, up four from the previous quarter.
Both components rose quarter after quarter and are now over the break-even mark of 50.
The component measuring the current rate of lead and inquiry generation increased five points to 54, while the component measuring the backlog of renovation jobs increased two points to 58.
Please visit NAHB’s RMI website for the complete set of RMI tables, including regional indexes and a detailed history for each RMI component.
[Read more about this topic on Eyeonhousing.org]