Remodeling market sentiment fell two points to 62 in the first quarter of 2026 versus the fourth quarter of 2025, according to the National Association of Home Builders/Westlake Royal Remodeling Market Index. The reading has remained in positive territory (50 and above) since the first quarter of 2020.
The Current Conditions Index and Future Indicators Index are the two components that contribute to the Remodeling Market Index measurement.
The Current Conditions Index that tracks the current market for large ($50,000 or more), medium ($20,000 or more), and small (under $20,000) remodeling projects fell one point quarter-over-quarter to 70. Despite the small decline, the current conditions measurement for all three categories remains well above the positive threshold of 50, with large projects at 67, medium projects at 69 and small projects at 74.
The Future Indicators Index, which measures the current rate at which leads and inquiries are coming and the current backlog of remodeling projects, fell two points in the first quarter of 2026 to 54. Leads and inquiries came in at 53, down one point from the fourth quarter of 2025. Backlog came in at 55, down three points from the previous quarter.
“Ongoing positive remodeler sentiment is consistent with NAHB’s outlook, given an aging housing stock and the lock-in effect of elevated mortgage rates keeping owners in the homes longer,” NAHB said.
In the first quarter of this year, remodelers said 21% of their projects were home improvements made shortly after purchase, and 4% were for owners preparing to sell.
Read the full report here.
