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The National Association of Home Builders’ Remodeling Market Index averaged 62 in the third quarter of 2026, unchanged from the previous quarter. Current conditions remained at 70, while the Future Indicators Index rose two points to 54, pointing to modest improvement in leads and project backlogs.
The National Association of Home Builders’ Remodeling Market Index (RMI) averaged 62 in Q3 2026, indicating that more remodelers rated market conditions good than poor. The overall index was unchanged from the previous quarter, while its Future Indicators Index rose two points, suggesting modest improvement in leads and project backlogs.
The RMI is a seasonally adjusted survey of remodelers that asks them to rate five aspects of the market as good, fair or poor. The index runs from 0 to 100; a reading above 50 means more respondents view conditions as good than poor. The overall figure averages the Current Conditions Index and the Future Indicators Index.
The Current Conditions Index averaged 70 for the third consecutive quarter. Its three project-size measures all remained above 50: large projects of $50,000 or more rose two points to 66; moderate projects of at least $20,000 and under $50,000 fell two points to 71; and small projects under $20,000 slipped one point to 73.
The Future Indicators Index averaged 54, up two points from the previous quarter. The measure for incoming leads and inquiries rose two points to 53, while the backlog measure increased two points to 56. Both readings remained above the survey’s neutral threshold, although the source material does not provide the underlying respondent counts or a longer-term comparison for these movements.
Steady Demand, Uneven Project Pressures
The results show continued positive sentiment across project sizes, alongside a modest improvement in the survey’s forward-looking measures. For remodeling businesses, stronger readings for leads and backlogs may indicate a firmer near-term pipeline, but the index does not establish how many inquiries will turn into signed contracts or completed work.
NAHB chief economist Robert Dietz said the third-quarter reading fits the association’s projection for remodeling activity to remain stable in 2026 and grow slightly in 2027. He also pointed to labor shortages and extended project completion times. The survey therefore presents a mixed operating picture: sentiment is positive, but staffing and costs can affect how quickly contractors deliver work and how customers respond.
The trend also matters to retailers and suppliers serving remodeling contractors. Persistent activity may support demand for materials and related products, while delayed projects and customer hesitation could affect the timing of orders. The index is a measure of sentiment, however, not a direct tally of sales, spending or completed renovations.
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How NAHB Builds the RMI
The survey combines five component measures. The Current Conditions Index averages remodelers’ assessments of large, moderate and small projects. The Future Indicators Index averages current leads and inquiries with the backlog of remodeling jobs. The overall RMI is the average of those two indexes.
Because the measure asks whether conditions are good, fair or poor, a reading above 50 signals a greater share of positive than negative views; it does not mean that market activity grew by that percentage. The 62 reading is an index value, not a growth rate. The supplied report gives the change in each component from the previous quarter but does not state the prior-quarter overall figure separately.
NAHB Remodelers Chair Elliott Pike, a remodeler from Homewood, Alabama, said respondents in some parts of the country continued to report high material costs and difficulty finding enough workers to finish projects on time. He also cited economic uncertainty as a reason some prospective customers were hesitant to proceed.
The Limits of the Survey Reading
The reported figures describe remodeler sentiment, not verified construction output, spending or future revenue. The source material does not provide the survey’s sample size, regional breakdown, response rate or margin of error, so the extent to which the results represent all remodelers cannot be evaluated from the release alone.
It is also unclear how much the reported pressure from material costs, labor availability and customer hesitation affected individual businesses or project schedules. NAHB’s expectation of stable activity in 2026 and slight growth in 2027 remains a forecast; actual performance will depend on conditions that may change.
Watch Activity Beyond Sentiment
The next useful test will be subsequent RMI readings and other measures of remodeling activity. Readers can compare whether the Future Indicators Index continues to improve with changes in leads, backlogs and completed projects. NAHB’s current outlook is for activity to remain stable in 2026 and grow slightly in 2027, but the supplied report does not specify a date for the next index release.
For now, the Q3 figures confirm steady overall sentiment and a small quarter-to-quarter rise in future indicators. They do not resolve how labor constraints, material costs or customer caution will affect project completion and demand in coming quarters.
Key Questions
What was the Remodeling Market Index in Q3 2026?
The RMI averaged 62. Because the index is above 50, more surveyed remodelers viewed conditions as good than poor.
Did remodeling sentiment rise during the quarter?
The overall index was unchanged from the previous quarter. The Future Indicators Index rose two points to 54, while Current Conditions remained at 70.
Which project-size measure had the highest reading?
Small remodeling projects, valued at under $20,000, had the highest component reading at 73, despite slipping one point.
What challenges did remodelers report?
NAHB Remodelers Chair Elliott Pike cited high material costs, difficulty finding enough labor and economic uncertainty that can make prospective customers hesitate.
Does an RMI of 62 mean remodeling activity grew by 62%?
No. The RMI is an index, not a percentage growth rate. A reading above 50 means positive views outnumber negative views among survey respondents.
Source: rss
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