Hardware Retailing The Industry's Source for Insights and Information
The National Association of Home Builders (NAHB) released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the third quarter of 2025, posting a reading of 60, a one point increase over Q2.
“Overall, remodelers remain optimistic about the market, although slightly less optimistic than they were at this time last year,” says Nicole Goolsby Morrison, NAHB Remodelers Chair, and remodeler from Raleigh, North Carolina. “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 Current Conditions Index (CCI) is an average of three components: the current market for large remodeling projects, moderately sized projects and small projects. The Future Indicators Index (FII) is an average of two components: the current rate at which leads and inquiries are coming in and the current backlog of remodeling projects. The overall RMI is calculated by averaging the CCI and the FII. Any number over 50 indicates that more remodelers view remodeling market conditions as good than poor.
“The small quarter-over-quarter improvement in the RMI is consistent with flat construction spending trends and the current wait-and-see demand environment,” says Robert Dietz, NAHB chief economist. “Going forward, remodeling spending should continue to grow, supported by the aging housing stock and gains for household net worth.”
