The NAHB Remodeling Market Index (RMI) recorded a reading of 62 in the third quarter of 2026, representing a one-point increase from the previous quarter.
For the past four years, the RMI has maintained a narrow range of 59 to 70.
Remodeler sentiment continues to be the most distinctive sector of the housing industry when contrasted with its single-family and multifamily counterparts.
Remodelers report that economic uncertainty is causing some prospective customers to be hesitant to proceed with projects, despite the fact that sentiment has remained stable.
The completion of projects is being delayed as a result of labor shortages, which are further exacerbated by immigration enforcement and competition from data center construction.
However, remodeling is increasing its market share in the construction industry as a whole, as it is somewhat less susceptible to the current high interest rates than new construction.
The NAHB’s projection for remodeling activity is consistent with today’s reading, indicating that it will remain stable in 2026 and slightly increase in 2027.
The RMI is derived from a survey that requests that remodelers evaluate various aspects of the residential remodeling market as “good,” “fair,” or “poor.” The responses to each question are transformed into an index that is positioned on a scale of 0 to 100.
A higher percentage of respondents perceive conditions as favorable than as unfavorable when the index exceeds 50.
Present Situation
The Current Conditions Index and the Future Indicators Index make up the Remodeling Market Index (RMI), which is an average of the two key components.
The Current Conditions Index is a composite of three components: the current market for large remodeling projects ($50,000 or more), moderately-sized projects ($20,000 to $49,999), and minor projects (under $20,000).
The Current Conditions Index maintained an average of 70 for the third consecutive quarter in the third quarter of 2026.
The component measuring large remodeling projects increased by two points to 66, while the small projects component decreased by one point to 73, and the moderately-sized projects component decreased by two points to 71..
Future Indicators
The Future Indicators Index is a composite of two components: the current rate of lead and inquiry inflow and the current backlog of remodeling projects.
The Future Indicators Index averaged 54 in the third quarter of 2026, a two-point increase from the previous quarter.
For the quarter, both the component that measures the backlog of remodeling projects and the current rate at which leads and inquiries are generated increased by two points respectively, to 56 and 53.
Please visit NAHB’s RMI web page to access the complete set of RMI tables, which includes regional indices and a comprehensive history for each RMI component.
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