In the third quarter of 2025, the NAHB/Westlake Royal Remodeling
Market Index (RMI) posted a reading of 60, up one point compared
to the previous quarter. With the reading of 60, the RMI remains
solidly in positive territory above 50, but lower than it had
been at any time from 2021 through 2024.
Overall, remodelers remain optimistic about the market, although
slightly less optimistic than they were at this time last year.
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.
The small quarter-over-quarter improvement in the RMI is
consistent with flat construction spending trends and the
current wait-and-see demand environment. Going forward,
remodeling spending should continue to grow, supported by the
aging housing stock and gains for household net worth.
The RMI is based on a survey that asks remodelers to rate
various aspects of the residential remodeling market “good”,
“fair” or “poor.” Responses from each question are converted to
an index that lies on a scale from 0 to 100. An index number
above 50 indicates a higher proportion of respondents view
conditions as good rather than poor.
Current Conditions
The Remodeling Market Index (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 subcomponents: the current market for large remodeling
projects ($50,000 or more), moderately sized projects ($20,000
to $49,999), and small projects (under $20,000). In the third
quarter of 2025, the Current Conditions Index averaged 68, up
two points from the previous quarter. All three components
increased quarter-over-quarter and remained above the break-even
point of 50. Moderately-sized projects rose four points to 70,
large projects were up two points to 64, and small remodeling
projects inched up one point to 71.
Source:
eyeonhousing.org
