The NAHB/Westlake Royal Remodeling Market Index (RMI) is a quarterly survey conducted by the National Association of Home Builders (NAHB) to gauge the health of the U.S. residential remodeling market. It comprises two main components: the Current Conditions Index, which assesses the present market for large, moderate, and small remodeling projects, and the Future Indicators Index, which evaluates the rate of incoming leads and project backlogs. Each component is scored on a scale from 0 to 100, with a score above 50 indicating that more remodelers view conditions as good rather than poor. The overall RMI is the average of these two indices, providing a comprehensive snapshot of the remodeling industry’s performance.
In the first quarter of 2025, the RMI posted a reading of 63, a decline of five points from the previous quarter but still in positive territory. This marks only the second time since early 2020 that the index has been this low. The dip reflects growing consumer hesitancy amid economic uncertainties, including concerns over tariffs and the broader economic outlook. Despite these challenges, factors such as rising homeowner equity and limited housing inventory continue to support demand for remodeling projects, suggesting a resilient market moving forward.
