US Remodeling Market Sentiment Improves in Q3

On Thursday, the National Association of Home Builders (NAHB) released results from its Q3 NAHB/Westlake Royal Remodeling Market Index (RMI). The RMI posted a quarterly gain of one point, rising to 60—above the breakeven level of 50 but below readings seen from 2021 through 2024.

NAHB said remodelers remain optimistic about market conditions, though slightly less so than a year ago. Persistent headwinds include high material and labor costs and continued economic and political uncertainty, which have made some homeowners hesitant to proceed with remodeling projects.

The modest improvement in the RMI aligns with flat construction spending and a “wait-and-see” demand environment. Remodeling spending is expected to continue growing, supported by an aging housing stock and higher household net worth.

The Future Indicators Index, which averages two components—the rate of incoming leads and inquiries, and the backlog of remodeling projects—averaged 52 in Q3, up one point from Q2. The backlog component rose four points to 56, while the leads and inquiries measure fell two points to 49.