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The National Association of Home Builders’ Remodeling Market Index averaged 62 in the third quarter of 2026, indicating that more remodelers rated conditions good than poor. Current Conditions held at 70, while Future Indicators rose two points to 54; remodelers cited material costs, labor constraints and economic uncertainty as ongoing challenges.
The National Association of Home Builders’ Remodeling Market Index (RMI) averaged 62 in the third quarter of 2026, showing that remodeler sentiment remained in positive territory while current conditions held steady and future indicators improved modestly. The results point to continued activity in remodeling, even as industry leaders report pressure from high material costs, labor shortages and customer hesitation.
The RMI’s Current Conditions Index averaged 70 for the third consecutive quarter. Each of its three project-size measures remained above 50, the threshold indicating that more remodelers viewed conditions as good than poor. The measure for large projects of $50,000 or more rose two points to 66. The moderate-project measure, covering work from $20,000 to under $50,000, fell two points to 71, while the small-project measure, for jobs under $20,000, slipped one point to 73.
The Future Indicators Index averaged 54, up two points from the previous quarter. Its measure of incoming leads and inquiries rose two points to 53, and its measure of remodeling-job backlog also increased two points, to 56. Both components remained above 50, though the index level was lower than the Current Conditions reading.
The RMI combines remodelers’ assessments of five market components. Respondents rate conditions as good, fair or poor, and results are seasonally adjusted. The overall index averages the Current Conditions and Future Indicators indexes; a reading above 50 means more remodelers see conditions as good than poor. The figures describe reported sentiment, not a direct count of completed projects or a guarantee of future growth.
What the 62 Reading Signals
The results suggest the remodeling market entered the second half of 2026 with stable reported conditions and a small improvement in measures related to future work. The rise in leads and backlog may indicate continued demand, but those readings do not establish how many inquiries will become signed contracts or completed projects. The lower Future Indicators score, at 54, also shows that expectations-related measures were positive but closer to the neutral midpoint than current conditions.
For homeowners, contractors and building-material retailers, the survey offers a snapshot of how remodelers assess the market and the pressures affecting project delivery. Labor availability and material costs can influence schedules and budgets, while customer uncertainty may delay decisions. 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; that is a forecast, not a result established by this survey.
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How NAHB Builds the RMI
The RMI is based on five survey components: assessments of current market conditions for large, moderate and small remodeling projects, plus the current pace of leads and inquiries and the backlog of projects. The first three measures are averaged into the Current Conditions Index; the other two form the Future Indicators Index. Those two index values are then averaged to calculate the overall RMI.
Because the index measures respondents’ views rather than industry output, a score of 62 should be read as a balance of reported sentiment, not as a 62% growth rate. The survey’s threshold is 50: scores above it mean a greater share of remodelers rate conditions good than poor. In Q3, all five component readings were above that level, although their quarter-to-quarter movements varied.
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Limits of the Survey Reading
The published results do not specify how many projects were delayed, how much completion times have lengthened, or the dollar impact of labor and material constraints. They also do not quantify how many potential customers postponed or canceled work because of economic uncertainty. The index captures remodelers’ assessments and does not show whether leads or backlogs ultimately turn into completed projects.
The source provides the quarter’s index values and comparisons with the previous quarter for the future indicators, but it does not provide survey sample details or regional figures in the material summarized here. The reported national results therefore do not establish how conditions differ among markets or types of remodeling businesses.
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The Next Quarterly RMI Update
The next useful comparison will be the subsequent quarterly RMI release, which can show whether current conditions remain steady and whether the modest rise in leads and backlog continues. Changes in project-size readings may also help clarify whether sentiment is broadening or varying by job scale.
Until then, NAHB’s outlook remains that remodeling activity will be stable in 2026 and grow slightly in 2027. That projection should be distinguished from the Q3 survey findings: the index records sentiment for the quarter, while future activity and the effects of labor availability, material costs and customer decisions remain subject to change.
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Key Questions
What was the Remodeling Market Index in Q3 2026?
The overall RMI averaged 62. A reading above 50 means more remodelers rated market conditions good than poor.
Did current remodeling conditions improve?
The Current Conditions Index remained at 70 for a third consecutive quarter. Large-project sentiment rose, while moderate- and small-project measures edged down; all three stayed above 50.
What changed in the future indicators?
The Future Indicators Index rose two points to 54. Leads and inquiries reached 53, and the backlog measure reached 56, with both up two points from the previous quarter.
What challenges did remodelers report?
NAHB Remodelers chair Elliott Pike cited high material costs, difficulty finding enough labor to finish projects on time, and economic uncertainty that can make some customers hesitant to proceed.
Does the RMI reading mean remodeling will grow in 2027?
No. The reading measures remodelers’ sentiment, not future industry output. NAHB chief economist Robert Dietz said it is consistent with the association’s projection of stable activity in 2026 and slight growth in 2027, but that remains a forecast.
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