Within the third quarter of 2025, the NAHB/Westlake Royal Reworking Market Index (RMI) posted a studying of 60, up one level in comparison with the earlier quarter. With the studying of 60, the RMI stays solidly in optimistic territory above 50, however decrease than it had been at any time from 2021 via 2024.
Total, remodelers stay optimistic in regards to the market, though barely much less optimistic than they have been right now final 12 months. Probably the most important headwinds they’re going through embrace excessive materials and labor prices, in addition to financial and political uncertainty making a few of their potential clients cautious about transferring ahead with transforming tasks.
The small quarter-over-quarter enchancment within the RMI is according to flat building spending traits and the present wait-and-see demand atmosphere. Going ahead, transforming spending ought to proceed to develop, supported by the ageing housing inventory and beneficial properties for family internet value.
The RMI is predicated on a survey that asks remodelers to fee varied features of the residential transforming market “good”, “truthful” or “poor.” Responses from every query are transformed to an index that lies on a scale from 0 to 100. An index quantity above 50 signifies the next proportion of respondents view circumstances pretty much as good slightly than poor.
Present Circumstances
The Reworking Market Index (RMI) is a median of two main element indices: the Present Circumstances Index and the Future Indicators Index. The Present Circumstances Index is a median of three subcomponents: the present marketplace for giant transforming tasks ($50,000 or extra), reasonably sized tasks ($20,000 to $49,999), and small tasks (underneath $20,000). Within the third quarter of 2025, the Present Circumstances Index averaged 68, up two factors from the earlier quarter. All three elements elevated quarter-over-quarter and remained above the break-even level of fifty. Reasonably-sized tasks rose 4 factors to 70, giant tasks have been up two factors to 64, and small transforming tasks inched up one level to 71.
Future Indicators
The Future Indicators Index is a median of two subcomponents: the present fee at which leads and inquiries are coming in, and the present backlog of transforming tasks.
Within the third quarter of 2025, the Future Indicators Index averaged 52, growing one level from the earlier quarter. The element measuring the backlog of transforming jobs additionally elevated, rising 4 factors to 56. The element measuring the present fee at which leads and inquiries are coming in, nonetheless, decreased two factors from the earlier quarter, falling into damaging territory at 49.
For the complete set of RMI tables, together with regional indices and an entire historical past for every RMI element, please go to NAHB’s RMI internet web page.
Uncover extra from Eye On Housing
Subscribe to get the most recent posts despatched to your e mail.