Remodeling Sentiment Improves

In Q3 of 2025, remodeling market sentiment improved slightly after decreasing for the previous two quarters, according to the National Association of Home Builders. 

Q3 saw a Remodeling Market Index of 60, compared to 59 in Q2, 63 in Q1 and 68 in Q4 2024. Year over year, the RMI was still down (compared to 63 in Q3 2024).  

NAHB attributes the slight quarter-over-quarter improvement to flat construction spending trends and the current “wait-and-see” demand environment. It expects remodeling spending to continue to grow going forward. 

Last year, Americans spent an estimated $603 billion on remodeling their homes, according to the National Association of Realtors®’ 2025 Remodeling Impact Report. NAR also reported that the top remodeling projects that homeowners were the most happy with were: 

1. Added primary bedroom suite (10 out of 10) 
2. Kitchen upgrade (10) 
3. New roofing (10) 
4. Bathroom renovation (9.8) 
5. Complete kitchen renovation (9.7) 

Additionally, the top reasons for completing a remodeling project were: 

1. Upgrade worn-out surfaces, finishes and materials (27%)
2. Improve energy efficiency (19%)
3. Will sell in the next two years (18%)
4. Time for a change (18%) 
5. Add features and improve livability (8%) 

The majority (29%) hired a professional to do all of the remodeling work, while 24% did everything themselves.