If you have a half-finished kitchen or a bathroom on your wish list, the backdrop is holding up. NAHB's Q3 Remodeling Market Index registered 62, a notch higher than Q2 and still signaling positive sentiment. The gauge has hovered in the low 60s for much of 2025 and has remained in that band throughout 2026. According to NAHB Chief Economist Robert Dietz, the latest reading "is consistent with NAHB's projection for remodeling activity to remain stable in 2026 and grow slightly in 2027." He also noted remodeling is gaining share of overall construction because it is "somewhat less sensitive than new construction to the current elevated interest rates."
The measure of current conditions registered 70 for the third consecutive quarter. All three components remained solidly in positive territory. Large remodels of $50,000 or more rose two points to 66.
Mid-sized projects of at least $20,000 but under $50,000 dipped two points to 71. Smaller jobs under $20,000 eased one point to 73.
Remodeling spend tracks homeowner confidence more closely than sales do. Market Briefs reads housing data free every morning.
NAHB Remodelers Chair Elliott Pike called the market "stable," while flagging that some areas are running into "issues with high material costs and finding enough labor to finish projects on time." Dietz added, "Labor shortages, exacerbated by immigration enforcement and competition from data center construction, are extending the time it takes to complete projects." Pike also said economic uncertainty is "making some potential customers hesitant to move forward with projects."
The forward-looking side ticked higher. The Future Indicators Index came in at 54, rising two points from Q2. Leads and inquiries increased to 53, and the backlog of remodeling jobs rose to 56.
That mix says demand is holding even as projects take longer to wrap up due to labor constraints and, in some places, elevated material costs. For homeowners and small businesses tied to home improvement, that means interest in projects is still coming in, but schedules may stretch and decisions may take longer when uncertainty creeps in.
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