Despite an overall feeling of negativity across the housing construction industry, with builder sentiment still in negative territory as of late, the remodeling market persists in its positivity, according to the latest data from the National Association of Home Builders (NAHB).
The NAHB/Westlake Royal Remodeling Market Index (RMI) reported a reading of 62 (with 50 being the breakeven mark) for Q1 2026, down two points from Q4 2025 but still firmly in the positive territory.
“Remodeler sentiment remained generally positive in the first quarter, as it was at the end of last year, even as many remodelers are still working to manage their customers’ cost expectations,” said NAHB Remodelers Chair Elliott Pike. “Only a relatively small share report homeowners putting projects on hold due to economic and political uncertainty.”
The Current Conditions Index fell only one point to 70. All three components remained well above 50, in positive territory: the component measuring large remodeling projects ($50,000 or more) dipped two points to 67, the component measuring moderate remodeling projects (at least $20,000 but less than $50,000) dropped two points to 69, and the component measuring small-sized remodeling projects (under $20,000) increased one point to 74.
“Ongoing positive remodeler sentiment is consistent with the NAHB outlook, given an aging housing stock and the lock-in effect of elevated mortgage rates keeping owners in their homes,” said NAHB Chief Economist Robert Dietz. “In the first quarter, remodelers reported that 21% of their projects were associated with home improvements made shortly after a purchase, while only 4% were for homeowners’ projects to ready a home for sale.”
The Future Indicators Index fell two points 54, closing in slightly closer on negative territory. The component measuring the current rate at which leads and inquiries are coming in dipped one point to 53, and the component measuring the backlog of remodeling jobs dropped three points to 55.
