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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 stayed at 70, while future indicators rose two points to 54; remodelers also reported pressure from material costs, labor shortages and hesitant customers.
The National Association of Home Builders’ Remodeling Market Index averaged 62 in Q3 2026, showing that more remodelers viewed market conditions as good than poor, while sentiment remained broadly stable. The current-conditions measure held at 70 for a third consecutive quarter, and the future-indicators measure rose two points to 54, according to the report published by Hardware Retailing.
The Current Conditions Index averaged 70, unchanged for the third quarter in a row. Its three project-size measures remained above the index’s 50-point threshold: sentiment for large projects of $50,000 or more increased two points to 66; moderate projects of at least $20,000 but less than $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. Its measure of the rate of incoming leads and inquiries rose two points to 53, while the measure of the backlog of remodeling jobs increased two points to 56. Both components were above 50, the threshold indicating that more remodelers rated conditions good than poor.
The RMI is based on remodelers’ ratings of five market components as good, fair or poor. Its scores are seasonally adjusted on a 0-to-100 scale. The overall index averages the Current Conditions and Future Indicators indexes; it is not a measure of revenue, project volume or year-over-year growth. The Q3 reading describes industry sentiment, rather than confirming that remodeling activity itself increased during the quarter.
Steady Conditions, Cautious Outlook
The results point to a remodeling market that remains more positive than negative, but the modest improvement in future indicators does not erase reported operating constraints. Labor availability and material costs can affect how quickly contractors complete jobs and whether they can take on additional work. Customer hesitation may also affect the timing of projects, even while the index remains in positive territory.
For homeowners, contractors and building-product retailers, the distinction between current conditions and forward-looking measures matters: the current index was unchanged, while leads and backlogs improved modestly. The report offers a gauge of remodeler assessments, not a guarantee of future demand or a forecast for any individual business or market.
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How the RMI Measures Sentiment
The index combines assessments of three project-size categories with views on incoming leads and job backlogs. A score above 50 means a larger share of respondents rated conditions good rather than poor; it does not mean activity grew by that percentage or by a corresponding number of projects.
NAHB Remodelers Chair Elliott Pike, a remodeler from Homewood, Alabama, said the overall stability masked differences across the country. He cited high material costs and difficulty finding enough workers to finish jobs on schedule, and said economic uncertainty was making some prospective customers hesitant to proceed.
NAHB Chief Economist Robert Dietz said the Q3 reading was consistent with the association’s projection that remodeling activity would remain stable in 2026 and grow slightly in 2027. That is an outlook, not a result established by this quarter’s sentiment figures. Dietz also said remodeling was gaining share in the broader construction market and was somewhat less sensitive than new construction to elevated interest rates.
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Limits of the Q3 Sentiment Data
The reported index values do not establish how much remodeling spending, project starts or completed work changed in Q3. The source material does not provide respondent counts, regional breakdowns, or the size of the reported effects from material costs and labor shortages. It also does not quantify how many customers postponed projects because of economic uncertainty.
NAHB’s expectation of stable activity in 2026 and slight growth in 2027 is a forecast, not a confirmed outcome. The report does not specify the scale of that projected growth or provide a separate measure of remodeling activity for the quarter.
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Watch Leads, Backlogs and Costs
Future readings of the RMI will show whether the two-point increase in future indicators continues and whether current conditions remain at 70. The lead and backlog components are particularly relevant to whether remodelers see work arriving and waiting to be completed, though the index alone cannot establish actual project volume.
Readers should also watch for further information on labor availability, material costs and customer decisions, as well as NAHB’s subsequent updates to its remodeling outlook. The Q3 report does not give a date for the next release or detail how its 2027 projection may change.
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Key Questions
What was the Remodeling Market Index in Q3 2026?
The overall RMI averaged 62. Because the score was above 50, more remodelers rated conditions good than poor.
Did current remodeling conditions improve?
The Current Conditions Index stayed at 70 for a third consecutive quarter. Within it, large-project sentiment rose to 66, while moderate- and small-project measures edged down to 71 and 73.
What improved in the future indicators?
The Future Indicators Index rose two points to 54. The leads and inquiries measure reached 53, and the job-backlog measure reached 56.
Does an RMI of 62 mean remodeling activity grew by 62%?
No. The RMI is a seasonally adjusted sentiment index on a 0-to-100 scale, not a percentage growth rate or a count of projects.
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 the effects of those issues.
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