Remodeler confidence slips but remains positive, NAHB reports

On Thursday, the National Association of Home Builders (NAHB) released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the first quarter of 2026. The index reading of 62 was down two points from the previous quarter but remains firmly in positive territory.

The NAHB/Westlake Royal RMI asks remodelers to rate five aspects of the remodeling market as “good,” “fair” or “poor.” Each component is scored from 0 to 100, with a reading above 50 signaling that more remodelers view conditions as good than poor. All RMI results are seasonally adjusted.

The Current Conditions Index is based on three components: the current market for large remodeling projects, moderately sized projects and small projects. The Future Indicators Index averages two components: the current pace of leads and inquiries, and the existing backlog of remodeling work.

The overall RMI is the average of the Current Conditions Index and the Future Indicators Index, with any score above 50 indicating that more remodelers see market conditions as good than poor.

“Remodeler sentiment remained generally positive in the first quarter, as it was at the end of last year, even as many remodelers are still working to manage their customers’ cost expectations,” Elliott Pike, chair of the NAHB Remodelers Council, said in a statement. “Only a relatively small share report homeowners putting projects on hold due to economic and political uncertainty.”

“Ongoing positive remodeler sentiment is consistent with the NAHB outlook, given an aging housing stock and the lock-in effect of elevated mortgage rates keeping owners in their homes,” NAHB chief economist Robert Dietz said. “In the first quarter, remodelers reported that 21% of their projects were associated with home improvements made shortly after a purchase, while only 4% were for homeowners’ projects to ready a home for sale.”

The Current Conditions Index averaged 70, slipping one point from the prior quarter. All three components stayed well above 50: The measure of large remodeling projects ($50,000 or more) fell two points to 67; moderate projects (at least $20,000 but less than $50,000) declined two points to 69; and small projects (under $20,000) rose one point to 74.

The Future Indicators Index averaged 54, down two points from the previous quarter. The measure of the current rate of leads and inquiries eased one point to 53, while the component tracking the backlog of remodeling jobs decreased three points to 55.

Remodelers remain more confident than homebuilders

Remodelers remain more positive than homebuilders, NAHB data indicates. According to the latest NAHB/Wells Fargo Housing Market Index (HMI), builder confidence remained subpar in March with a reading of 38. 

National Kitchen & Bath Association (NKBA) President and CEO Bill Darcy told The Builder’s Daily in February that remodelers feel more confident than their homebuilding counterparts in 2026. Luxury projects, Darcy said, are expected to be the main driver of growth in the remodeling industry for the remainder of the year. 

According to NAHB, the average age of a home increased from 31 years in 2006 to 41 years in 2023. This trend correlates with a rise in home improvement projects. Additionally, thanks to the post-pandemic increase in home prices, homeowners now hold substantial home equity, giving them more financial capacity to take on these projects. 

Tyler Williams reported and wrote this article with drafting assistance from HousingWire Automation, an editorial tool that helps transform announcements and industry data into HousingWire-style news coverage.