While the construction industry remains overall challenged, remodeling remains in a more positive territory for another quarter, according to the latest data from the National Association of Home Builders (NAHB).
NAHB’s Remodeling Market Index (RMI) For Q2 2026 saw a reading of 61, down one point from the previous quarter but still in positive territory (above to 50-point mark). The index has also remained in the low 60s consistently over the past year.
“Remodeler sentiment has been positive and stable over the past year,” said NAHB Remodelers Chair Elliott Pike. “The major headwinds that are preventing an even stronger remodeling market include rising costs, political and economic uncertainty, and difficulty obtaining financing with favorable interest rates for larger projects.”
The Current Conditions Index averaged 70, remaining unchanged from the previous quarter. All three components remained well above 50 in positive territory: the component measuring large remodeling projects ($50,000 or more) dipped three points to 64, the component measuring moderate remodeling projects (at least $20,000 but less than $50,000) increased four points to 73, and the component measuring small-sized remodeling projects (under $20,000) held steady at 74.
“Despite affordability concerns, rising home owner equity and an aging housing stock are powering demand for residential remodeling,” said NAHB Chief Economist Robert Dietz. “This is keeping the remodeling market relatively strong despite certain impediments, like the rising cost of building materials. In the latest RMI survey, 74% of remodelers reported that their suppliers have increased prices of materials since March due to higher fuel costs, with the average increase in materials prices over that time being 6.7%.”
The Future Indicators Index averaged 52, down two points compared to the previous quarter. The component measuring the current rate at which leads and inquiries are coming in dropped two points to 51, and the component measuring the backlog of remodeling jobs dipped one point to 54.
For the full RMI tables, visit nahb.org/rmi.
