Remodeling Market Sentiment Improves in Q3

Remodelers remain optimistic about the market but face headwinds, including high material and labor costs and political uncertainty.
Oct. 10, 2025
3 min read

The National Association of Home Builders released its third quarter NAHB/Westlake Royal Remodeling Market Index, which posted a reading of 60, up one point from the previous quarter. With the reading of 60, the RMI remains solidly in positive territory, but lower than it had been at any time between 2021 and 2024.

The NAHB/Westlake Royal RMI survey asks remodelers to rate five components of the remodeling market as “good,” “fair” or “poor.” Each question is measured on a scale from 0 to 100, where an index number above 50 indicates that a higher share of respondents view conditions as good than they do poor. 

“Overall, remodelers remain optimistic about the market, although slightly less optimistic than they were at this time last year,” said NAHB Remodelers Chair Nicole Goolsby Morrison, a remodeler from Raleigh, N.C. “The most significant headwinds they are facing include high material and labor costs, as well as economic and political uncertainty making some of their potential customers cautious about moving forward with remodeling projects.”

Current Conditions Index

The Current Conditions Index averaged 68, up two points from the previous quarter. All three components remained above 50 in positive territory: the component measuring large remodeling projects ($50,000 or more) rose two points to 64, the component measuring moderate remodeling projects (at least $20,000 but less than $50,000) climbed four points to 70, and the component measuring small-sized remodeling projects (under $20,000) inched up one point to 71.

The Current Conditions Index is an average of three components: the current market for large remodeling projects, moderately-sized projects and small projects. 

“The small quarter-over-quarter improvement in the RMI is consistent with flat construction spending trends and the current wait-and-see demand environment,” said NAHB Chief Economist Robert Dietz. “Going forward, remodeling spending should continue to grow, supported by the aging housing stock and gains for household net worth.”

Future Indicators Index

The Future Indicators Index averaged 52, up one point from the previous quarter. The component measuring the current rate at which leads and inquiries are coming in dipped two points to 49, while the component measuring the backlog of remodeling jobs increased four points to 56.

The Future Indicators Index is an average of two components: the current rate at which leads and inquiries are coming in and the current backlog of remodeling projects. The overall RMI is calculated by averaging the Current Conditions Index and the Future Indicators Index. Any number over 50 indicates that more remodelers view remodeling market conditions as good than poor.

About the Author

Jay Schneider

Senior Editor

Jay Schneider is the Senior Editor for Pro Remodeler. He can be reached at [email protected].

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