Remodeler sentiment rose one point to 62 in the third quarter, lifted by stronger forward-looking indicators, according to the National Association of Home Builders Remodeling Market Index. The index has remained between 59 and 70 for the past four years. Remodeler sentiment continues to outpace that of single-family and multifamily builders.
The Future Indicators Index gained two points to 54. Both of its components rose two points: the backlog of remodeling jobs reached 56, and the rate of incoming leads and inquiries reached 53. The Current Conditions Index held at 70 for the third straight quarter. Within it, large projects ($50,000 or more) rose two points to 66, moderately sized projects ($20,000 to $49,999) fell two points to 71, and small projects (under $20,000) slipped one point to 73.
Remodelers report that economic uncertainty has led some customers to put off projects. Labor shortages, made worse by immigration enforcement and competition from data center construction, also extended project timelines. Even so, remodeling gained share of the overall construction market because it is less sensitive than new construction to elevated interest rates. NAHB expects remodeling activity to hold steady in 2026 and grow slightly in 2027.
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