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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 conditions as good than poor. Current conditions stayed at 70, while the future indicators measure rose two points to 54; respondents also reported material costs, labor availability and economic uncertainty as concerns.
The National Association of Home Builders’ Remodeling Market Index averaged 62 in Q3 2026, signaling that a larger share of surveyed remodelers rated market conditions good than poor. Current conditions held steady, while the index’s future indicators improved modestly, offering a mixed but generally positive picture of the remodeling market.
The Current Conditions Index averaged 70 for the third consecutive quarter. Its three project-size measures remained above 50, the threshold indicating that more remodelers assessed conditions as good than poor. The measure for large projects of $50,000 or more rose two points to 66. The moderate-project measure, for work costing at least $20,000 but less than $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 the rate of incoming leads and inquiries rose two points to 53, and the measure of remodeling-job backlog increased two points to 56. Both readings remained above 50, though the index levels do not establish how much work will ultimately be completed or how revenue will change.
NAHB Remodelers Chair Elliott Pike, a remodeler from Homewood, Alabama, said sentiment had remained stable but that businesses in some parts of the country continued to face high material costs and difficulty finding enough labor to finish projects on time. Pike also said economic uncertainty was making some prospective customers hesitant to proceed. Those comments describe issues reported by remodelers; the survey figures themselves do not quantify their prevalence or effect on project volume.
Stable Conditions, Firmer Forward Measures
The readings suggest that remodelers surveyed by NAHB continued to view the market favorably overall, with current conditions steady and leads and backlogs improving slightly compared with the prior quarter. For contractors, suppliers and retailers serving home-improvement projects, that combination points to ongoing activity rather than a sharp near-term shift. It is not a guarantee that every business or region will see growth.
NAHB chief economist Robert Dietz said the third-quarter result was consistent with the association’s projection for remodeling activity to remain stable in 2026 and grow slightly in 2027. He said remodeling is gaining share in the broader construction market and is somewhat less sensitive than new construction to elevated interest rates. That is NAHB’s assessment, not a separate finding established by the index. Labor constraints and customer hesitation remain potential limits on how quickly demand translates into completed work.
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How NAHB Builds the Remodeling Index
The Remodeling Market Index (RMI) comes from a survey asking remodelers to rate five parts of the market as good, fair or poor. Results are seasonally adjusted and reported on a scale from 0 to 100. An index above 50 means a greater share of respondents views conditions as good than poor; it does not mean that 50% of projects are growing or that activity increased by the number of index points.
The overall RMI averages the Current Conditions Index, based on ratings of large, moderate and small projects, and the Future Indicators Index, based on the current pace of leads and inquiries and the backlog of jobs. The Q3 comparison cited in the report is with the previous quarter for the Future Indicators Index and its components. The current-conditions figure is described as unchanged at 70 for a third quarter in a row.
Regional Pressures and Demand Effects
The report gives national index averages but does not break out results by region, company size or type of remodeling work beyond project cost categories. It also does not specify how many survey responses support each measure or provide a margin of error, limiting what can be concluded about differences among remodelers.
Although Pike reported material-cost and labor problems in some parts of the country, the source does not quantify their scale. It is also unclear how much customer hesitation linked to economic uncertainty may affect signed contracts, project starts or cancellations. The readings capture survey responses and should not be treated as a direct count of completed jobs or a measure of remodeling spending.
Watch the Next Quarterly Survey
The next quarterly RMI release will show whether the two-point rise in future indicators continues and whether it is followed by changes in current conditions. Readers tracking the market can also compare project-size measures, incoming leads and job backlogs in the next report for signs that sentiment is strengthening or weakening.
For now, NAHB’s stated outlook is for remodeling activity to remain stable during 2026 and grow slightly in 2027. The source material does not give a date for the next survey release or additional forecast details, so the timing and scale of any change remain to be seen.
Key Questions
What was the Remodeling Market Index in Q3 2026?
The overall RMI averaged 62. Because that is above 50, the survey indicates that more remodelers rated conditions good than poor.
Did current remodeling conditions improve?
The Current Conditions Index stayed at 70 for the third consecutive quarter. Within it, large-project sentiment rose to 66, while moderate projects fell to 71 and small projects edged down to 73.
What changed in the future indicators?
The Future Indicators Index rose two points to 54 from the previous quarter. Leads and inquiries reached 53, and the job-backlog measure reached 56.
What challenges did remodelers report?
NAHB Remodelers Chair Elliott Pike cited high material costs, labor shortages and customer hesitation linked to economic uncertainty. The report does not quantify how widespread those challenges are.
What is NAHB’s outlook for remodeling activity?
NAHB chief economist Robert Dietz said the Q3 reading was consistent with the association’s projection that activity would remain stable in 2026 and grow slightly in 2027. This is a forecast, not a confirmed outcome.
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