In the second quarter of 2025, the NAHB/Westlake Royal聽聽(RMI) posted a reading of 59, down four points compared to the previous quarter. While this reading is still in positive territory, some remodelers, especially in the West, are seeing a slowing of activity in their markets. The second-quarter reading of 59 marks only the second time the RMI has dipped below 60 since the survey was revised in the first quarter of 2020.
聽and general economic uncertainty have affected聽聽and are headwinds for remodeling, but not to the extent that they have been for single-family construction, as is evident in聽聽from the NAHB/Wells Fargo聽聽(HMI).聽 As a result, NAHB is still聽聽solid gains for remodeling spending in 2025, followed by more modest, but still positive, growth in 2026.
The RMI is based on a survey that asks remodelers to rate various aspects of the residential remodeling market 鈥済ood鈥�, 鈥渇air鈥� or 鈥減oor.鈥澛� Responses from each question are converted to an index that lies on a scale from 0 to 100. An index number above 50 indicates a higher proportion of respondents view conditions as good rather than poor.
Current Conditions
The Remodeling Market Index (RMI) is an average of two major component indices: the Current Conditions Index and the Future Indicators Index.
The Current Conditions Index is an average of three subcomponents: the current market for large remodeling projects ($50,000 or more), moderately sized projects ($20,000 to $49,999), and small projects (under $20,000). 聽In the second quarter of 2025, the Current Conditions Index averaged 66, down five points from the previous quarter. 聽All three components decreased quarter-over-quarter, with both small and moderately-sized remodeling projects falling six points to 70 and 66, respectively, while large remodeling projects slipped two points to 62.聽 Nevertheless, all three components remained above 50 in positive territory.
Future Indicators
The Future Indicators Index is an average of two subcomponents: the current rate at which leads and inquiries are coming in, and the current backlog of remodeling projects.
In the second quarter of 2025, the Future Indicators Index averaged 51, decreasing four points from the previous quarter. While the component measuring the current rate at which leads and inquiries are coming in remained unchanged at 51, the component measuring the backlog of remodeling jobs fell six points to 52.聽 Similar to the Current Conditions components, both remain above 50 in positive territory.
For the full set of RMI tables, including regional indices and a complete history for each RMI component, please visit NAHB鈥檚 RMI聽.
