Remodeler confidence remained positive in the second quarter, according to the National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI). The index registered 61, down one point from the previous quarter but continuing a year-long trend of readings in the low 60s, indicating that most remodelers still view market conditions favorably.
“Remodeler sentiment has been positive and stable over the past year,” said NAHB Remodelers Chair Elliott Pike. He noted that rising construction costs, political and economic uncertainty, and higher financing costs for larger projects continue to temper market activity.
NAHB Chief Economist Robert Dietz said strong homeowner equity and the nation’s aging housing stock are helping sustain demand for remodeling despite affordability concerns. However, rising material costs remain a challenge. According to the latest survey, 74% of remodelers reported supplier price increases since March, with materials costs rising an average of 6.7%, largely driven by higher fuel costs.
The Current Conditions Index averaged 70. Large remodeling projects valued at $50,000 or more slipped three points to 64, while moderate-sized projects ($20,000 to $50,000) climbed four points to 73. Small remodeling projects under $20,000 remained unchanged at 74.
The Future Indicators Index declined two points to average 52. Remodelers reported slightly fewer leads and inquiries, with that component falling to 51, while the backlog of remodeling projects eased one point to 54. Despite the modest decline, both measures remain above the 50-point threshold, signaling continued optimism for future remodeling activity.
For the full RMI tables, please visit www.nahb.org/rmi.
ABOUT NAHB REMODELERS: NAHB Remodelers is America’s home for professional remodelers, representing the more than 53,000 members of the National Association of Home Builders (NAHB) who are involved in the remodeling industry. Founded in 1982, the organization provides information, education and designation programs to improve the business and construction expertise of its members and to enhance the professional image of the industry. Its membership incorporates nearly 100 local councils across the nation.
ABOUT NAHB: The National Association of Home Builders is a Washington-based trade association representing more than 140,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is affiliated with 700 state and local home builders associations around the country. NAHB’s builder members will construct about 80% of the new housing units projected for this year.
