Overview
- NAHB’s Remodeling Market Index, released Thursday, showed an RMI of 61 for Q2 2026, down one point from Q1 but still comfortably above the 50 break-even level.
- The Current Conditions Index stayed strong at 70 while the Future Indicators Index slipped to 52, with the large-projects component falling to 64 and small and mid-size work holding higher readings.
- Seventy-four percent of remodelers reported supplier-driven material-price increases since March, with an average rise of 6.7 percent, pressuring margins and prompting tighter estimates and contract escalation clauses.
- Official data analyzed by NAHB show remodeling spending rose 0.9 percent month-over-month and 8.1 percent year-over-year in May, reflecting steady consumer outlays even as new-home builder sentiment stays weak.
- Financing frictions for projects above $50,000 are causing homeowners to delay or scale back big jobs and are creating a lender opportunity to design credit products that use high homeowner equity and tailored approval timelines.