The NAHB/Westlake Royal Remodeling Market Index (RMI) posted a robust reading of 60 in the third quarter of 2025, revealing unexpected strength in the home improvement sector. This index, measuring remodelers' sentiment, confirms sustained willingness among homeowners to invest in their properties. Many choose to upgrade existing spaces, avoiding high interest rates and limited housing inventory.

Remodelers face significant material price increases, yet consumer sentiment for larger projects and major retailer sales remain strong. This tension reveals a market where costs rise, but demand for substantial renovations continues to drive activity.

Based on sustained market sentiment and optimistic corporate outlooks, the home improvement sector appears poised for continued, albeit selective, growth through 2026, driven by higher-value projects. Major retailers are uniquely positioned to capitalize on this trend.

Remodeling Sentiment Remains Robust

  • The NAHB Remodeling Market Index (RMI) was 61 in Q2 2026, down one point from the prior quarter but above the break-even level of 50, according to HousingWire.
  • Sentiment for moderately sized remodeling projects between $20,000 and $49,999 rose four points to 73 in Q2 2026, according to HousingWire.

This sustained positive sentiment, particularly for significant projects, confirms homeowners prioritize substantial investments in their properties. The market appears resilient, absorbing minor fluctuations while maintaining a strong foundation of consumer intent for upgrades.

Lowe's Defies Expectations with Strong Sales

Lowe's Q4 2025 results surpassed Wall Street estimates for both revenue and adjusted earnings per share, according to Kavout | AI. This performance confirms robust consumer spending in home improvement. The company also reported a 0.6% increase in comparable sales during the first quarter of 2026, according to corporate reports.

Online sales grew significantly, increasing by 15.5% in the first quarter of 2026, according to corporate reports. The 15.5% increase in online sales in the first quarter of 2026 indicates a shift in consumer purchasing behavior, with more homeowners turning to online channels for renovation needs, potentially bypassing traditional contractor-led sourcing.