The National Association of Home Builders (NAHB) released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the fourth quarter, posting a reading of 64, up four points compared to the previous quarter.

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.

“Most remodelers are finding reasonably strong market conditions, even with the normal seasonal slowdown during the holidays,” said NAHB Remodelers Chair Nicole Goolsby Morrison, a remodeler from Raleigh, N.C. “However, rising costs and customer hesitation due to economic and policy uncertainty remain key challenges for the industry.”

“The RMI reading of 64 is consistent with NAHB’s forecast for continued moderate growth in remodeling activity in 2026,” said NAHB Chief Economist Robert Dietz. “Demand for remodeling is being supported by an aging housing stock, strong homeowner equity and increasing need for aging-in-place improvements.”

The Current Conditions Index averaged 71, increasing three 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) rose five points to 69, the component measuring moderate remodeling projects (at least $20,000 but less than $50,000) inched up one point to 71, and the component measuring small-sized remodeling projects (under $20,000) increased two points to 73.

The Future Indicators Index averaged 56, up four points compared to the previous quarter. The component measuring the current rate at which leads and inquiries are coming in rose five points to 54, and the component measuring the backlog of remodeling jobs increased two points to 58.

For the full RMI tables, please visit nahb.org/rmi.