The sentiment across the remodeling market is looking up. The National Association of Home Builders (NAHB) released their NAHB/Westlake Royal Remodeling Market Index (RMI) for the third quarter. The survey results indicate a consistent uptick in morale from Q2.
The Current Conditions Index (CCI) saw a two point increase from Q2 (66) to Q3 (68). This defies the index’s steady decrease since Q4 2024. The CCI is calculated by multiple factors including the current market for large remodeling projects, moderately-sized projects and small projects. The Future Indicators Index (FII), which accounts for the current rate of leads and inquiries for remodelers and their backlog of remodeling projects also saw a positive.
The RMI is calculated through the CCI and FII both nationally and regionally. The midwest confidence is the strongest while the west is the most cautious.
“Overall, remodelers remain optimistic about the market, although slightly less optimistic than they were at this time last year,” said NAHB Remodelers Chair Nicole Goolsby Morrison, a remodeler from Raleigh, N.C. “The most significant headwinds they are facing include high material and labor costs, as well as economic and political uncertainty making some of their potential customers cautious about moving forward with remodeling projects.”
