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The National Association of Home Builders’ Remodeling Market Index averaged 62 in the third quarter of 2026, indicating that more surveyed remodelers viewed market conditions as good than poor. Current conditions held at 70, while future indicators rose two points to 54; the survey also records reports of high material costs, labor constraints and customer hesitation.
Remodeler sentiment remained steady in the third quarter of 2026, with the National Association of Home Builders’ Remodeling Market Index averaging 62, according to results reported by Hardware Retailing. The reading remained above the index’s neutral threshold of 50, while the Future Indicators Index rose two points to 54, suggesting surveyed remodelers were more positive than negative about conditions despite ongoing cost, labor and customer-demand concerns.
The survey’s Current Conditions Index averaged 70, unchanged for the third consecutive quarter. Its three measures all remained above 50. Sentiment for large projects valued at $50,000 or more rose two points to 66; the measure for projects of at least $20,000 but under $50,000 fell two points to 71; and the measure for projects under $20,000 declined one point to 73.
The Future Indicators Index reached 54, up two points from the prior quarter. Its measure of the current rate of incoming leads and inquiries rose two points to 53, while the measure of remodelers’ project backlogs also increased two points, to 56. Both readings were above 50, the survey’s threshold for more positive than negative assessments.
The figures are survey measures, not counts of projects, sales or completed work. The index asks remodelers to rate five aspects of the market as good, fair or poor. The reported results are seasonally adjusted, and the overall RMI is calculated as the average of the Current Conditions and Future Indicators indexes.
Steady Demand, Persistent Project Pressures
The results point to a remodeling market that has maintained positive sentiment rather than accelerated sharply. A Current Conditions reading of 70 indicates that respondents continued to rate the market for projects of different sizes more positively than negatively. The increase in future indicators offers a modest improvement in views of incoming business and existing workloads, but the reading of 54 remains much closer to the 50 threshold than the current-conditions measure.
For homeowners and businesses planning renovations, the reported constraints may affect how quickly work can be scheduled and completed. NAHB Remodelers Chair Elliott Pike said some remodelers continue to face high material costs and difficulty finding enough labor to finish projects on time. He also said economic uncertainty is leading some potential customers to hesitate. These are comments from the association’s chair about reported industry conditions, not a measure of how many projects have been delayed or postponed.
The industry outlook matters to contractors, suppliers and retailers because remodeling activity affects demand for building materials and labor. NAHB Chief Economist Robert Dietz said remodeling is gaining share of the overall construction market and is somewhat less sensitive than new construction to elevated interest rates. That is his assessment of the market; the Q3 index itself measures remodeler sentiment, not remodeling’s share of construction.
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How the Remodeling Index Is Built
The Remodeling Market Index is based on responses to five survey questions. Three make up the Current Conditions Index: assessments of the market for large, moderate and small remodeling projects. Two form the Future Indicators Index: the current rate of incoming leads and inquiries, and the backlog of remodeling jobs.
Each component is rated on a scale from 0 to 100. A value above 50 means a higher share of respondents views conditions as good than poor; it does not mean that every respondent is optimistic or that activity grew by the same number of points. The overall RMI averages the two subindexes. In Q3 2026, the unchanged current-conditions measure and the two-point rise in future indicators combined to produce an overall average of 62.
Dietz said the third-quarter result is consistent with NAHB’s projection that remodeling activity will remain stable in 2026 and grow slightly in 2027. That is an outlook attributed to NAHB, rather than a result established by the sentiment survey. The survey’s index readings describe respondents’ views at the time they answered.
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What the Survey Does Not Measure
The published figures establish how respondents rated conditions, but the source does not provide the number of survey participants, response rates or a breakdown by region. It also does not quantify material-cost increases, labor shortages, delayed projects or customers who chose not to proceed. The reported index changes should not be read as percentage changes in construction activity or project volume.
The source describes the overall third-quarter reading as stable and provides the subindex results, but it does not give a separate numerical overall RMI figure for the previous quarter in the supplied report text. The data therefore support the stated characterization of stable sentiment and a two-point quarterly rise in future indicators, but do not allow a fuller comparison of every measure over time. The causes and likely duration of the reported labor and customer-demand pressures are also not quantified.
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Monitoring the 2027 Outlook
The next useful indicator will be whether incoming leads and project backlogs continue to improve in subsequent survey releases. The Q3 results show each future measure up two points from the previous quarter, but both remain survey readings rather than forecasts of completed work. Future results can show whether that improvement holds or reverses.
NAHB’s projection, as described by Dietz, is for remodeling activity to remain stable in 2026 and grow slightly in 2027. That forecast may be affected by labor availability, materials costs, interest rates and customers’ willingness to commit to projects. The supplied report does not specify a date for the next RMI release or provide revised forecasts tied to the Q3 results.
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Key Questions
What was the Remodeling Market Index in Q3 2026?
The overall RMI averaged 62, according to the results reported by Hardware Retailing. The scale runs from 0 to 100, and a reading above 50 means more surveyed remodelers rated conditions good than poor.
Which part of the index improved?
The Future Indicators Index rose two points to 54 from the previous quarter. Incoming leads and inquiries increased two points to 53, and the backlog measure rose two points to 56.
Did current remodeling conditions improve?
The Current Conditions Index stayed at 70 for a third consecutive quarter. Large-project sentiment increased to 66, while moderate- and small-project measures slipped to 71 and 73, respectively; all three remained above 50.
What challenges did remodelers report?
NAHB Remodelers Chair Elliott Pike cited high material costs, difficulty finding enough labor and economic uncertainty that may make some customers hesitate. The source does not quantify how many firms face each issue.
What is NAHB’s remodeling outlook?
NAHB Chief Economist Robert Dietz said the Q3 reading is consistent with the association’s projection for remodeling activity to remain stable in 2026 and grow slightly in 2027. That is an attributed forecast, not a guarantee of future activity.
Source: rss
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