T
he National Association of Home Builders (NAHB) has released the first-quarter results of its Remodeling Market Index (RMI), showing a score of 63, down five points from the previous quarter. This marks only the second time since Q1 2020 that the RMI has dipped as low as 63.

    The Current Conditions Index, which reflects large, medium-sized, and small-scale remodeling projects, fell to 71, with all components remaining above 50. The Future Indicators Index, which measures incoming leads and inquiries, and backlog of ongoing work, dropped to 55. Remodelers cited uncertainty around tariffs and broader economic conditions as factors contributing to the decline.

    "Strong homeowner equity and limited housing options are driving demand for remodeling," said NAHB Remodelers Chair Nicole Goolsby Morrison. "However, optimism has cooled somewhat due to client hesitation about larger projects." NAHB Chief Economist Robert Dietz added that rising costs and tariff concerns have led to consumer caution, with suppliers increasing prices by an average of 6.9% since January.

    The RMI survey asks remodeling professionals to rate market conditions as "good," "fair," or "poor" on a scale of 0 to 100. The Current Conditions Index fell four points to 71, while the Future Indicators Index dropped six points to 55.