Remodeling Market Sentiment Up in Q4 2025
Strong remodeling activity shows homeowners reinvesting instead of selling, shaping inventory now and creating future listing opportunities for Realtors.
WASHINGTON — The National Association of Home Builders said remodeling market conditions strengthened at the end of 2025, even as higher costs and economic uncertainty continued to weigh on some homeowners’ decisions.
The NAHB/Westlake Royal Remodeling Market Index rose to 64 in the fourth quarter, up four points from the previous quarter. Any reading above 50 indicates that more remodelers view market conditions as good rather than poor.
“Most remodelers are finding reasonably strong market conditions, even with the normal seasonal slowdown during the holidays,” said Nicole Goolsby Morrison, a remodeler based in Raleigh, North Carolina. She said rising costs and hesitation tied to policy and economic uncertainty remain key challenges.
The index measures remodelers’ views of current and future activity across projects of different sizes, as well as incoming leads and backlogs of work. Results are seasonally adjusted.
NAHB’s Current Conditions Index averaged 71, up three points from the third quarter. Large remodeling projects costing $50,000 or more rose five points to 69, while mid-sized projects between $20,000 and $50,000 edged up to 71. Smaller projects under $20,000 increased to 73.
The Future Indicators Index averaged 56, up four points from the prior quarter. Remodelers reported stronger demand, with the index for leads and inquiries rising to 54, while the backlog of remodeling jobs increased to 58.
The overall reading aligns with expectations for the year ahead, said NAHB Chief Economist Robert Dietz, noting that remodeling demand continues to be supported by an aging housing stock, strong homeowner equity and a growing need for aging-in-place improvements.
NAHB forecasts moderate growth in remodeling activity in 2026.
Source: NAHB
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