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The National Association of Home Builders’ Remodeling Market Index averaged 62 in the third quarter of 2026, indicating more remodelers rated conditions good than poor. Current conditions were unchanged at 70, while future indicators rose two points to 54; respondents also reported labor and material-cost pressures and customer hesitation tied to economic uncertainty.
The National Association of Home Builders’ Remodeling Market Index averaged 62 in the third quarter of 2026, showing that more remodelers rated market conditions good than poor. Current conditions stayed at 70 for a third consecutive quarter, while the index’s future indicators rose two points to 54, according to the report published by Hardware Retailing.
The RMI combines remodelers’ assessments of five parts of the market, each rated good, fair or poor and converted to a 0-to-100 scale. A score above 50 means a greater share of respondents view conditions as good rather than poor. The results are seasonally adjusted. NAHB calculates the overall index by averaging its Current Conditions and Future Indicators indexes.
The Current Conditions Index averaged 70, unchanged for the third quarter in a row. Its large-project component, covering jobs of $50,000 or more, rose two points to 66. The moderate-project component, for jobs of at least $20,000 but less than $50,000, fell two points to 71. The small-project component, for work under $20,000, slipped one point to 73. All three remained above 50.
The Future Indicators Index reached 54, up two points from the previous quarter. Its measure of incoming leads and inquiries rose two points to 53, while the measure of remodeling-job backlog also gained two points, reaching 56. These readings are positive on the survey’s scale but do not, by themselves, quantify changes in project volume or revenue.
Steady Demand Meets Capacity Constraints
The results point to continued favorable sentiment among remodelers, but not a uniform improvement across every measure. Current conditions held steady, while both future components recorded modest gains. For contractors, retailers and homeowners, that combination suggests the market is not showing a broad deterioration in the survey, even as the outlook measures remain closer to the 50-point dividing line than current project assessments.
NAHB Remodelers Chair Elliott Pike said some remodelers continue to face high material costs and difficulty finding enough labor to complete jobs on schedule. He also said economic uncertainty is making some prospective customers hesitant. Those reported constraints matter to homeowners because they can affect project timing and contractors’ ability to take on work. The survey does not establish how widespread or severe each issue is.
The report also describes remodeling as gaining share in the overall construction market and as somewhat less sensitive than new construction to elevated interest rates. That is NAHB’s assessment, not a separate measure provided in the RMI figures. The index tracks remodelers’ views of conditions; it is not a direct count of completed renovations, spending or permits.
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How the RMI Measures Remodeling
The RMI is a quarterly sentiment survey that asks remodelers to rate five market components. Three feed the Current Conditions Index: demand for large, moderate and small remodeling projects. Two feed the Future Indicators Index: the current pace of leads and inquiries, and the backlog of projects. NAHB averages those two subindexes to produce the overall reading.
For each measure, a score above 50 means more respondents rate conditions good than poor; it does not mean that activity has grown by the same number of percentage points. The Q3 report says the overall reading of 62 is consistent with NAHB’s projection that remodeling activity will remain stable in 2026 and grow slightly in 2027. That projection is the economist’s outlook, while the 62 is the survey result.
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Survey Scores Do Not Measure Output
The report does not provide the number of remodelers surveyed, response rates, regional breakdowns or margins of error. It also does not quantify the reported effects of material costs, labor availability or customer hesitation on project schedules and business activity. The RMI captures respondents’ assessments, so the scores should not be read as a direct measure of renovation spending or completed work.
NAHB’s expectation of stable activity in 2026 and slight growth in 2027 remains a forecast. The report does not specify the amount of projected growth or the assumptions behind that outlook. It is also unclear from the published figures whether the gains in leads and backlogs will translate into completed projects, particularly where labor constraints persist.
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Watch Leads, Backlogs and Hiring
The next useful indicators will be whether leads and project backlogs continue to rise and whether remodelers can find workers and manage material costs well enough to complete jobs on schedule. Later RMI releases can show whether the Q3 increase in future indicators continues, reverses or levels off. Readers should distinguish those upcoming survey readings from actual activity measures such as completed projects and spending.
For now, NAHB’s stated outlook is that remodeling activity will stay stable in 2026 and grow slightly in 2027. The Q3 report does not give a specific date for the next release or add a numerical estimate for that projected growth.
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Key Questions
What was the Remodeling Market Index in Q3 2026?
The RMI averaged 62. On the survey’s 0-to-100 scale, a score above 50 means more remodelers rated conditions good than poor.Did current remodeling conditions improve?
The Current Conditions Index stayed at 70 for a third consecutive quarter. Large-project sentiment rose to 66, while moderate and small project readings declined slightly but remained above 50.What changed in the future indicators?
The Future Indicators Index increased two points to 54. Leads and inquiries reached 53, and the remodeling-job backlog measure reached 56.What challenges did remodelers report?
NAHB Remodelers Chair Elliott Pike cited high material costs, difficulty finding labor and economic uncertainty that may make some customers hesitate. The report does not quantify how many remodelers face each issue.What is NAHB forecasting for remodeling activity?
NAHB chief economist Robert Dietz said the Q3 reading is consistent with a projection for activity to remain stable in 2026 and grow slightly in 2027. That is a forecast, not a result measured by the index.Source: rss
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