The National Association of Home Builders (NAHB) released its NAHB/Westlake Royal Remodeling Market Index for Q2, posting a reading of 59, down four points compared to the previous quarter. While the reading of 59 is still in positive territory, NAHB stated that this is only the second time the RMI has dipped below 60 since the survey was revised in Q1 2020.
“Although remodeler sentiment softened in the second quarter, overall it remains positive,” said NAHB Chief Economist Robert Dietz. “High interest rates and economic uncertainty are headwinds for remodeling, but not to the extent that they have been for single-family construction. Even with these headwinds, NAHB is projecting that remodeling will post solid gains in 2025, followed by more modest but still positive growth in 2026.”
The Current Conditions Index averaged 66, as stated in the report, dropping five points compared to the previous quarter. All three components remained in positive territory: the component measuring large remodeling projects ($50,000 or more) fell two points to 62, the component measuring moderate remodeling projects (at least $20,000 but less than $50,000) fell six points to 66, and the component measuring small-sized remodeling projects (under $20,000) fell six points to 70.
NAHB reported that the Future Indicators Index averaged 51, down four points compared to the previous quarter. The component measuring the current rate at which leads and inquiries are coming in remained unchanged compared to the previous quarter at 51, and the component measuring the backlog of remodeling jobs fell six points to 52.
“Most remodelers continue to express positive sentiment, but some, especially in the western part of the country, are seeing a slowing of activity in their markets,” added NAHB Remodelers Chair Nicole Goolsby Morrison. “Those who report a slowdown have cited economic uncertainty stemming from government policies as the main reason.”
For the full report, visit nahb.org/rmi.
