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Breaking Flooring News

Home Remodeling Market Shows Signs of Cooling as Index Falls to Four-Year Low

By FLOOR Trends & Installation Editors
NAHB
NAHB
July 11, 2025

The National Association of Home Builders (NAHB) released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the second quarter, posting a reading of 59, down four points compared to the previous quarter. While the reading of 59 is still in positive territory, this is only the second time the RMI has dipped below 60 since the survey was revised in the first quarter of 2020.

“Most remodelers continue to express positive sentiment, but some, especially in the western part of the country, are seeing a slowing of activity in their markets,” said NAHB Remodelers Chair Nicole Goolsby Morrison, a remodeler from Raleigh, N.C. “Those who report a slowdown have cited economic uncertainty stemming from government policies as the main reason.

“Although remodeler sentiment softened in the second quarter, overall it remains positive,” said NAHB Chief Economist Robert Dietz. “High interest rates and economic uncertainty are headwinds for remodeling, but not to the extent that they have been for single-family construction. Even with these headwinds, NAHB is projecting that remodeling will post solid gains in 2025, followed by more modest but still positive growth in 2026.”

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 view conditions as good 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.

The Current Conditions Index averaged 66, dropping five points compared to the previous quarter. All three components remained above 50 in positive territory: the component measuring large remodeling projects ($50,000 or more) slipped two points to 62, the component measuring moderate remodeling projects (at least $20,000 but less than $50,000) fell six points to 66, and the component measuring small-sized remodeling projects (under $20,000) dropped six points to 70.

The Future Indicators Index averaged 51, down four points compared to the previous quarter. The component measuring the current rate at which leads and inquiries are coming in remained unchanged compared to the previous quarter at 51, and the component measuring the backlog of remodeling jobs fell six points to 52.

KEYWORDS: market reports National Association of Home Builders (NAHB) renovation/remodeling

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