The National Association of Home Builders (Washington, D.C.) has released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the fourth quarter of 2025, posting a reading of 64—up four points compared to the previous quarter.
The NAHB/Westlake Royal RMI survey asks remodelers to rate five components of the remodeling market as "good," "fair" or "poor." Each question is measured on a scale from 0 to 100, where an index number above 50 indicates that a higher share of respondents view conditions as good rather than poor. The results of the RMI are seasonally adjusted.
The Current Conditions Index is an average of three components: the current market for large remodeling projects, moderately sized projects and small projects. The Future Indicators Index 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 Current Conditions Index and the Future Indicators Index. Any number over 50 indicates that more remodelers view remodeling market conditions as good than poor.
“Most remodelers are finding reasonably strong market conditions, even with the normal seasonal slowdown during the holidays,” said NAHB Remodelers Chair Nicole Goolsby Morrison, a remodeler from Raleigh, N.C. “The major headwinds the industry is experiencing continue to be rising costs and potential customers hesitating due to policy and economic uncertainty.”
“The RMI reading of 64 is consistent with NAHB’s forecast for continued moderate growth in remodeling activity in 2026,” added NAHB Chief Economist Robert Dietz. “Demand for remodeling is being supported by an aging housing stock, strong homeowner equity and increasing need for aging-in-place improvements.”
For the full RMI tables, click here.
