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Mood for Remodeling Remains Bright

By Rick Laezman | Oct 24, 2025
A 2025 Q3 report from the National Association of Home Builders found increased optimism for home remodeling among contractors.

According to the National Association of Homebuilders (NAHB), ratings from professional remodelers measured in solid positive territory in the third quarter of 2025 and slightly up from the previous quarter.

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In this uncertain economy, positive signs can be found. For example, remodelers report an increase in optimism.

According to the National Association of Homebuilders (NAHB), ratings from professional remodelers measured in solid positive territory in the third quarter of 2025 and slightly up from the previous quarter.

The NAHB's Remodeling Market Index (RMI) measured 60 for the quarter. According to the NAHB, the index is measured on a scale of 0 to 100, and anything above 50 is considered positive. The Q3 measurement is one point better than Q2, but three points below Q1.

The RMI is based on surveys conducted with members of the NAHB who are in the profession of remodeling. It asks them to rate five different components of their industry. These include remodelers’ assessment of the current market conditions for projects over $50,000, those priced between $20,000 and $50,000, and those priced below $20,000. These are averaged out into the Current Market Index. The remaining two components concern the current rate at which leads and inquiries are coming in and remodelers’ current backlog of projects. These two are averaged out into the Future Indicators Index. The two are then averaged again to arrive at the final index.

NAHB interprets the slight increase in the quarterly RMI as a sign that the industry is poised to see increased activity. According to NAHB’s chief economist and senior vice president for economics and housing policy Robert Dietz, “Going forward, remodeling spending should continue to grow, supported by the aging housing stock and gains for household net worth.” 

Although the RMI has been in positive territory in the first three quarters of the year, it has remained at its lowest level in three years. The RMI has been as high as 77 in Q2 and Q3 of 2022.

About The Author

LAEZMAN is a Los Angeles-based freelance writer who has been covering renewable power for more than 10 years. He may be reached at [email protected]

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