The National Association of Home Builders (NAHB) is reporting renewed momentum in the remodeling sector, as its NAHB/Westlake Royal Remodeling Market Index (RMI) rose to 64 in the fourth quarter, a four-point increase from the previous quarter. The gain suggests that a majority of remodelers continue to view market conditions as favorable.

The RMI measures remodeler sentiment across five components, including current project activity and expectations for future demand. Readings above 50 indicate more remodelers rate conditions as good than poor, underscoring the overall health of the sector despite lingering headwinds.

 

According to NAHB Remodelers Chair Nicole Goolsby Morrison, strong demand has persisted even during a traditionally slower period. "Most remodelers are finding reasonably strong market conditions, even with the normal seasonal slowdown during the holidays," said Morrison.

The Current Conditions Index averaged 71 in the fourth quarter, reflecting strength across projects of all sizes. Large remodeling projects over $50,000 posted notable gains, while moderate and small projects also remained firmly in positive territory.

Future expectations also improved. The Future Indicators Index climbed four points to 56, supported by increased leads, inquiries and a growing backlog of work. NAHB Chief Economist Robert Dietz said the results align with expectations for the year ahead. "The RMI reading of 64 is consistent with NAHB's forecast for continued moderate growth in remodeling activity in 2026," Dietz said.

Dietz added that an aging housing stock, strong homeowner equity and demand for aging-in-place improvements continue to provide a stable foundation for the remodeling market moving forward.

https://www.nahb.org/news-and-economics/press-releases/2026/01/remodeling-market-sentiment-strengthens-in-fourth-quarter-of-2025