Despite a five-point decline in the first quarter of 2025, the NAHB/Westlake Royal Remodeling Market Index (RMI) remains in positive territory at 63, indicating that more remodelers view market conditions as good than poor. Rising homeowner equity and limited opportunities to move into other homes continue to support the home improvement market and keep remodeler sentiment positive. Notably, small remodeling projects under $20,000 maintained a strong index score of 76, reflecting steady demand in this segment.
“Rising homeowner equity and limited opportunities to move into other homes is still supporting the home improvement market and keeping remodeler sentiment positive,” said NAHB Remodelers Chair Nicole Goolsby Morrison, a remodeler from Raleigh, N.C. “Sentiment is not quite as positive as it was last quarter, however, as some remodelers are reporting that uncertainty about tariffs and the direction of the economy are making customers hesitant to spend on larger projects.”
“The five-point decline in the RMI likely reflects consumer uncertainty, fueled by rising costs and tariff concerns,” said NAHB Chief Economist Robert Dietz. “Although almost all the data for the first quarter RMI were collected before the release of specific reciprocal tariffs, the debate and uncertainty over tariffs has had an effect on consumer confidence. Indeed, remodelers responding to the RMI survey reported that their suppliers have already increased prices by an average of 6.9% since January, due to the anticipated effect of tariffs.”
