In the third quarter of 2026, the National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) posted a reading of 66. This is up one point from the second quarter. Compared to the single-family and multifamily sectors, remodeler sentiment continues to stand out in the residential construction industry, despite economic uncertainty.
Remodeling continues to increase in the overall construction market, due to it being less impacted than new construction by elevated interest rates. According to NAHB’s projection, remodeling activity will remain stable through the rest of 2026 and grow slightly in 2027.
The RMI is an average of two major component indices: the Current Conditions Index and the Future Indicators Index. The Current Conditions Index is an average of three components: the current market for large remodeling projects of $50,000 or more, moderately sized projects of $20,000 to $49,999, and small projects of under $20,000. In Q3, the Current Conditions Index averaged 70, which remained unchanged for the third consecutive quarter.
