Remodeling continues to hold its own as a “stable” segment of housing construction, despite continued challenges for the industry, according to the latest data from the National Association of Home Builders (NAHB).
NAHB’s Remodeling Market Index (RMI) for Q3 saw a reading of 62, up one point from Q2 and remaining above the 50-point breakeven line of a positive view for another quarter. Notably, remodeling sentiment has remained in the low 60s range throughout much of 2025, and now consistently throughout 2026.
NAHB Chief Economist Robert Dietz said that Q3’s reading “is consistent with NAHB’s projection for remodeling activity to remain stable in 2026 and grow slightly in 2027.”
“Remodeling is gaining share in the overall construction market, as it is somewhat less sensitive than new construction to the current elevated interest rates,” he continued.
The Current Conditions Index averaged 70 for the third quarter in a row. All three components remained well above 50 in positive territory: the component measuring large remodeling projects ($50,000 or more) grew two points to 66, the component measuring moderate remodeling projects (at least $20,000 but less than $50,000) fell two points to 71, and the component measuring small-sized remodeling projects (under $20,000) fell down one point to 73.
NAHB Remodelers Chair Elliott Pike noted that while the remodeling market is “stable,” some parts of the country are experiencing “issues with high material costs and finding enough labor to finish projects on time.”
“Labor shortages, exacerbated by immigration enforcement and competition from data center construction, are extending the time it takes to complete projects,” added Dietz.
Pike also noted that economic uncertainty is “making some potential customers hesitant to move forward with projects.”
Despite concerns, the Future Indicators Index for the RMI averaged 54, up two points from Q2. The component measuring the current rate at which leads and inquiries are coming in rose two points to 53, and the component measuring the backlog of remodeling jobs rose two points to 56.
For the full RMI tables, visit nahb.org/rmi.
