NAHB Reports Stable Remodeling Market Sentiment

Remodeling market sentiment held steady during the third quarter, up slightly from the previous quarter, according to the Q3 2026 NAHB Remodeling Market Index.

Oct. 13, 2026

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The National Association of Home Builders reported that remodeling remains the standout sector within the housing industry, when compared to its single-family and multifamily counterparts.

NAHB’s third-quarter Remodeling Market Index (RMI) indicated stable market sentiment with a reading of 62, up one point from the previous quarter. The RMI has remained within a narrow band between 59 and 70 for the past four years.

The RMI survey asks remodelers to rate various aspects of the residential remodeling market as being “good”, “fair,” or “poor.” Responses are measured on a scale from 0 to 100, where an index number above 50 indicates a higher proportion of respondents view conditions as good rather than poor.

The third quarter reading of 62 for the RMI is consistent with NAHB’s projection for remodeling activity to remain stable in 2026 and grow slightly in 2027,” said NAHB Chief Economist Robert Dietz. “Labor shortages, exacerbated by immigration enforcement and competition from data center construction, are extending the time it takes to complete projects. Nevertheless, remodeling is gaining share in the overall construction market, as it is somewhat less sensitive than new construction to the current elevated interest rates.

Current Conditions Index

The Current Conditions Index averaged 70, which remained unchanged for the third consecutive quarter. The component measuring large remodeling projects ($50,000 or more) increased two points to 66, the component measuring moderately sized projects ($20,000 to $49,999) decreased two points to 71, and the component measuring small projects (under $20,000) inched down one point to 73.

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

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 NAHB Remodelers Chair Elliott Pike, a remodeler from Homewood, Ala. “Remodelers also report that economic uncertainty is making some potential customers hesitant to move forward with projects.

Future Indicators

The Future Indicators Index averaged 54, up two points from the previous quarter. Both the component measuring the backlog of remodeling jobs and the current rate at which leads and inquiries come in increased two points to 56 and 53, respectively, for the quarter.

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.

Overall RMI

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.