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Remodeling Market Sentiment Strengthens in Fourth Quarter of 2025 – Eye On Housing

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In the third quarter of 2025, the NAHB/Westlake Royal Remodeling Market Index (RMI) posted a reading of 64, increasing four points compared to the previous quarter.

Most remodelers are finding reasonably strong market conditions, even with the normal seasonal slowdown during the holidays.  The major headwinds the industry is experiencing continue to be rising costs and potential customers hesitating due to policy and economic uncertainty.  Demand for remodeling is being supported by an aging housing stock, strong homeowner equity and increasing need for aging-in-place improvements.

The RMI is based on a survey that asks remodelers to rate various aspects of the residential remodeling market “good”, “fair” or “poor.”  Responses from each question are converted to an index that lies on a scale from 0 to 100. An index number above 50 indicates a higher proportion of respondents view conditions as good rather than poor.

Current Conditions

The Remodeling Market Index (RMI) is an average of two major component indices: the Current Conditions Index and the Future Indicators Index. 

The Current Conditions Index is an average of three subcomponents: the current market for large remodeling projects ($50,000 or more), moderately-sized projects ($20,000 to $49,999), and small projects (under $20,000).  In the fourth quarter of 2025, the Current Conditions Index averaged 71, increasing three points from the previous quarter.  All three components increased quarter-over-quarter and remained above the break-even point of 50.  Large remodeling projects saw the largest increase, rising five points to 69, followed by small remodeling projects adding two points to 73, and moderately-sized projects, inching up one point to 70.

Future Indicators

The Future Indicators Index is an average of two subcomponents: the current rate at which leads and inquiries are coming in, and the current backlog of remodeling projects. 

In the fourth quarter of 2025, the Future Indicators Index averaged 56, up four points from the previous quarter.  Both components increased quarter-over-quarter and are above the break-even point of 50.  The component measuring the current rate at which leads and inquiries are coming in rose five points to 54 while the component measuring backlog of remodeling jobs added two points to 58.

For the full set of RMI tables, including regional indices and a complete history for each RMI component, please visit NAHB’s RMI web page.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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10 Kitchen Remodeling Trends to Know for 2026

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2. Aging-in-Place Planning Moves to the Forefront

Designing for aging and long-term needs is becoming a bigger priority in kitchen remodels. More than half of renovating homeowners (53%) address current or future special needs in their kitchen projects — up 3 percentage points from the previous year. These include updates for aging household members, pets, household members with disabilities and young children. While fewer renovating homeowners expect the special needs to arise within the next year (25%, down 4 points), most are planning ahead: 52% anticipate needs emerging in five or more years, with smaller shares looking one to two years out (9%) or three to four years out (14%).

Aging-related updates are driving the shift. Among renovating homeowners addressing current needs, nearly one-third (31%) focus on aging household members, up 5 points year over year. Planning for future aging needs is even more common, at 41% (up 6 points). By comparison, far fewer renovating homeowners design for pets (8% current; 5% future), household members with disabilities (6% current; 7% future) or young children (5% for both), with several of these categories declining year over year.

When homeowners do plan for aging, they overwhelmingly prioritize safety and ease of use. Nine in 10 (90%) include accessibility features, a 2-point increase from the previous year. As this graphic shows, pullout cabinets lead the list (59%), followed by additional lighting (51%) and wide drawer pulls (44%). Rounded countertops (34%) and nonslip flooring (32%) are also popular, while more specialized upgrades — such as wheelchair-accessible doorways (21%), lower fixtures (15%) and lower countertops (5%) — remain less common.



This article was originally published by a www.houzz.com . Read the Original article here. .

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The 4 Potentially Most Expensive Words in Remodeling

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Ingram Construction CoSave Photo
In your mind, “While you’re at it” is simple. Six inches doesn’t seem very far. An electrician is already working at your house, and you already have a can light installed. No harm in moving it a few inches. But it’s not so simple.

In your contractor’s mind, these four words translate to “change order.” And while change orders are necessary and inevitable in many cases, they are notorious for adding cost to a project. If you’ve worked hard to come to an agreement with your banker, your contractor or your spouse to stay within a fixed price, a change order or two (or three, or 10) can throw your budget a curveball.

The moral of the story is to be aware of what you ask your contractor to do. Moving a can light involves more than an electrician. The drywall contractor and painter will need to patch the hole where the light was previously, for example. Altogether, it could end up costing hundreds to move that light half a foot. That might be pocket change to some people. But throw in seven to 10 more “pocket change”-sized change orders, and suddenly your bill has increased by a couple thousand dollars.

To prevent change orders, try to think carefully about everything involved (paint colors, position of can lights) in your project before the start date to make sure they’re included in your scope of work and contract. It will more than likely save you a few bucks — and a few headaches.

There is, of course, a chance that the professional you hired will move that can light for free. Every project and every professional is different. But odds are there are service fees (and a markup on those service fees) involved, so be aware of the implications of “while you’re at it.”

New to home remodeling? Learn the basics



This article was originally published by a www.houzz.com . Read the Original article here. .

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How to Stick to Your Remodeling Goals

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4. Write Down Your Priorities

You can also write it down and store it in a document online. This can seem like a waste of time (you know what you want), but in the thick of getting your project done, there are many shiny objects that can stand between you and a successful remodel. Having your priorities written down will allow you to stand back in the heat of the moment and evaluate if a new option will get you closer to your goals or farther away.

In my experience about 60% to 70% of the choices that get made on the spur of the moment cost more than sticking to the original choice. Sometimes it’s because something needs to be redone or upgraded (like reinforcing a tile floor) that wasn’t taken into account during the design phase. And sometimes it’s just because a friend suggests that something seen on TV would look so good in your remodel. Whatever the case, if you have a list to refer to, it’s easier to evaluate if those changes will get you closer to your goals.

See why you should hire a professional who uses Houzz Pro software



This article was originally published by a www.houzz.com . Read the Original article here. .

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How to Manage a Tricky Remodeling Client

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The Ardent Gardener Landscape DesignSave Photo
2. Find Out Your Client’s Triggers

Windsor recommends you anticipate issues that could be important to the homeowner early in the project. Her team does this by asking new clients how they found the experience of hiring renovation professionals in the past.

“This usually gives us a good understanding of what is most important to our client and how they might react when we hit the lowest part of the build,” she says.

For example, if the client complains that their builders were always late or didn’t inform them of everything, you will know that timekeeping and full communication are important to them.

For this, Windsor says she would put an action plan in place to ensure they have a platform where all information can be shared instantly and where everyone on site is aware.

Houzz Pro all-in-one business management software will help you do this, as you can set up a Client Dashboard to communicate quickly and clearly throughout the whole project. You can also share all those essential pieces of information easily, such as estimates, product specifications, floor plans, schedules and mood boards, so the client is kept in the picture all the way through.

Learn more about Houzz Pro software



This article was originally published by a www.houzz.com . Read the Original article here. .

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Residential Remodelers Outnumber Single-family Builders in the U.S.

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The number of residential remodelers in the U.S. has reached a record high of 128,187 establishments, 65% higher than the number of residential builders (single-family and multifamily), which stands at 77,455.  These official government counts were released by the U.S. Census Bureau as part of its 2022 Economic Census, which tallies American businesses every five years (in years ending in 2 and 7).

Growth in the number of remodelers significantly outpaced that of builders between 2017 and 2022. In that 5-year span, the remodeler count increased by 25% (102,818 to 128,187), while the number of builders grew at half that pace–by 12% (68,996 to 77,455).

A starker dichotomy emerges when comparing 2022 counts to those in 2007, prior to the financial crisis and the ensuing housing recession.  In that 15-year period, the official number of residential remodelers in the U.S. grew by 73% (73,888 to 128,187), while the official number of residential builders contracted by 21% (98,067 to 77,455).

Another way to analyze this data is by creating a combined universe of both builders and remodelers and then calculating each group’s share of the total. In 2022, for example, remodelers represented 62% of the total number of builders and remodelers in the U.S, while builders made up a minority share of 38%.  Remodelers have accounted for at least 60% of this total in the last three Economic Census (2012, 2017, and 2022). 

The last time builders comprised a majority share was in 2007, when they represented 57% of the combined total number of builders and remodelers in the country.

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This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Remodeling Market Sentiment Dips in Second Quarter

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In the second quarter of 2025, the NAHB/Westlake Royal Remodeling Market Index (RMI) posted a reading of 59, down four points compared to the previous quarter. While this reading is still in positive territory, some remodelers, especially in the West, are seeing a slowing of activity in their markets. The second-quarter reading of 59 marks only the second time the RMI has dipped below 60 since the survey was revised in the first quarter of 2020.

Higher interest rates and general economic uncertainty have affected consumer confidence and are headwinds for remodeling, but not to the extent that they have been for single-family construction, as is evident in June’s negative reading from the NAHB/Wells Fargo Housing Marketing Index (HMI).  As a result, NAHB is still forecasting solid gains for remodeling spending in 2025, followed by more modest, but still positive, growth in 2026. 

The RMI is based on a survey that asks remodelers to rate various aspects of the residential remodeling market “good”, “fair” or “poor.”  Responses from each question are converted to an index that lies on a scale from 0 to 100. An index number above 50 indicates a higher proportion of respondents view conditions as good rather than poor.

Current Conditions

The Remodeling Market Index (RMI) is an average of two major component indices: the Current Conditions Index and the Future Indicators Index. 

The Current Conditions Index is an average of three subcomponents: the current market for large remodeling projects ($50,000 or more), moderately sized projects ($20,000 to $49,999), and small projects (under $20,000).  In the second quarter of 2025, the Current Conditions Index averaged 66, down five points from the previous quarter.  All three components decreased quarter-over-quarter, with both small and moderately-sized remodeling projects falling six points to 70 and 66, respectively, while large remodeling projects slipped two points to 62.  Nevertheless, all three components remained above 50 in positive territory.

Future Indicators

The Future Indicators Index is an average of two subcomponents: the current rate at which leads and inquiries are coming in, and the current backlog of remodeling projects. 

In the second quarter of 2025, the Future Indicators Index averaged 51, decreasing four points from the previous quarter. While the component measuring the current rate at which leads and inquiries are coming in remained unchanged at 51, the component measuring the backlog of remodeling jobs fell six points to 52.  Similar to the Current Conditions components, both remain above 50 in positive territory.

For the full set of RMI tables, including regional indices and a complete history for each RMI component, please visit NAHB’s RMI web page.

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This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Pros Share the 8 Biggest Kitchen Remodeling Mistakes

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YB Interiors, LLCSave Photo
2. Mistake: Settling for Inferior Hardware

Good-quality accessories and hardware, such as pullout corner units, drawer dividers, and soft-close runners and door hinges, often get excluded from kitchen designs due to budget constraints. But this can be a false economy in the long run as features such as these can make a big difference to your kitchen, boosting its storage potential and making the space far more pleasant to use.

These features do add to the overall cost of a new kitchen, but they’re worth the extra outlay, particularly if you’re an enthusiastic cook.

Solution: Know your options. Ask your kitchen designer about all the storage and hardware options available so you can make a fully informed choice.

If you don’t specify exactly what you want, you may end up with less than ideal hardware and storage solutions, which can be a missed opportunity — think a setup that consists of more cupboards than drawers, drawers without inserts and no soft-closing hardware. If budget is a concern, focus on those features that you feel will make the most difference to your experience of the kitchen.

Shop for cabinet and drawer hardware on Houzz



This article was originally published by a www.houzz.com . Read the Original article here. .

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Remodeling Your Kitchen in Stages: Planning and Design

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Budget

A good estimate on the total cost, properly divided into each stage, is imperative for this plan to work.

If your plan is simple and includes new appliances, new paint and some new hardware, then the estimate will be easy. Go to an appliance store or go online and price out the appliances. Get that painting bid for your cabinets and walls. Count up the hardware requirements, price out your selection, and there you have it. Three simple stages and not much risk (as long as you confirm your appliance selections fit their respective spaces — more on that later).

In larger, more complex jobs, though, it’s difficult to properly price things out without some experience, as kitchen remodels can potentially involve framers, finish carpenters, drywallers, electricians, plumbers, tile setters, slab fabricators, painters and possibly even foundation contractors, roofers, insulators and more.

The point is that it can be challenging to properly estimate a phased remodel, or any remodel, but you need to have a go at it and keep refining and updating as needed. Contractors are experienced at the task, but if you are estimating on your own, make sure you get bids for every subcontractor task and price out the fixtures and materials. And, if you can, try to get some consultation from someone with experience.



This article was originally published by a www.houzz.com . Read the Original article here. .

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Aging-in-Place Remodeling Work Fell While Familiarity and Receptiveness Remain High

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Only 56% of professional remodelers undertake projects designed to allow homeowners to Age-in-Place (AIP), according to results from NAHB’s Q1 2025 Remodeling Market Index (RMI) survey.  This is the lowest percentage recorded since NAHB began periodically asking AIP questions on its RMI survey in 2004.  Economic uncertainty and high interest rates over the past year are the most likely explanations for this slight pullback in projects.  Additionally, stock market volatility has dampened any potential wealth effects, especially since over 75% of all corporate equities and mutual fund holdings are held by those 55 or older.

The National Institute of Aging defines AIP as “staying in your own home as you get older.”  This concept is becoming more relevant as the overall median age of the population continues to increase.  Given the age of the existing housing stock, the need to update homes for AIP is a major demand-driver for the remodeling sector.

Age Groups

When asked about the age groups of homeowners who request AIP work, 73% of remodelers indicated that homeowners are 65 years or older, followed by 55 to 64 years at 61%.  These two age groups have consistently been above 60% since the Q4 2010 survey.

Familiarity with Aging-in-Place

Ninety-six percent of remodelers indicated that most or some of their consumers are familiar with the AIP concept.  That share has been at least 90% since the Q4 2018 survey.

Type of Aging-in-Place Projects

Grab bars remain the most common AIP project, with 87% of remodelers reporting this job in the last year, followed by curb-less shower (78%), installing higher toilets (71%), and widening doorways (52%).  While their relative ranking has changed, these four have consistently been the AIP project types most often cited by remodelers.

Frequency of Aging-in-Place Requests

Seventy-three percent of remodelers indicated that requests for AIP features have significantly or somewhat increased over the past 5 years.  This figure has not changed much since the inception of the series in 2004, ranging from 72% to 77%.

Reasons for Aging-in-Place Work

As for the reason why customers are undertaking AIP projects, 91% of remodelers stated that customers are planning ahead for future needs, followed by living with older parents (48%) and acute age-related disabilities (43%). 

Who is Requesting Aging-in-Place Work?

Sixty-five percent of remodelers indicated that a majority of their AIP work was determined by the client, whereas the other 35% said it was mostly suggested by the contractor.  The ‘determined by client’ option has consistently been above 50 percent.

Receptive to Aging-in-Place Modifications

When asked how receptive potential clients are to incorporating suggested AIP modifications, 48% indicated that their customers were very receptive and 51% were somewhat receptive, with only 2% stated that customers were not at all receptive to these modifications.  The combined share of potential clients being receptive (‘very receptive’ + ‘somewhat receptive’) has consistently been above 95%.

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This article was originally published by a eyeonhousing.org . Read the Original article here. .

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