The National Association of Home Builders said remodeling market sentiment stayed steady in the third quarter, with the Remodeling Market Index edging up one point to 62.
The index surveys remodelers on five market aspects, letting them rate conditions as “good,” “fair” or “poor” on a 0-to-100 scale, which reflects overall industry sentiment. Scores above 50 indicate more positive than negative views, and the NAHB adjusts the results seasonally.
Two sub-indexes form the overall reading. The Current Conditions Index averages views on large, moderate and small projects, while the Future Indicators Index combines the rate of new leads with the backlog of jobs, providing a forward-looking perspective. The RMI is the mean of these two figures.
“Remodeler sentiment remained stable in the third quarter, although remodelers in certain parts of the country continue to report issues with high material costs and finding enough labor to finish projects on time,” said Elliott Pike, NAHB Remodelers chair.
He added that economic uncertainty is causing some potential customers to hesitate. Robert Dietz, the association’s chief economist, noted that figure aligns with forecasts for stable activity in 2026 and modest growth in 2027.
Read Also: Wonder Porcelain showcases new tile collections
He warned that labor shortages, exacerbated by immigration enforcement and competition from data-center construction, are lengthening project timelines, yet remodeling is gaining share of the construction market because it is less sensitive to raised interest rates, which often deter new-build activity.
The Current Conditions Index held at 70 for a third straight quarter, with all three components above the neutral mark. Large projects ($50,000 plus) rose to 66, moderate projects ($20,000-$49,999) slipped to 71, and small projects (under $20,000) fell to 73.
The Future Indicators Index climbed to 54, up two points. Leads and inquiries increased to 53, and the backlog measure rose to 56. These numbers indicate a modest improvement over the previous quarter.
Overall, remodeling continues to capture a larger portion of construction activity as new-build projects remain more vulnerable to the current high-interest environment.
Leave a Reply