Remodeling Confidence Increases Despite Rising Costs

The National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) posted a reading of 58 in the second quarter of 2018, up one point from the previous quarter. The RMI has been consistently above 50–indicating that more remodelers report market activity is higher compared to the prior quarter than report it is lower–since the second quarter of 2013. The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity.

“Remodelers across the country continue to see demand,” said NAHB Remodelers Chair Joanne Theunissen, CGP, CGR, a remodeler from Mt. Pleasant, Mich. “However, the rising cost of materials is impeding the market’s ability to be even stronger.”

 

For the full RMI tables, please visit www.nahb.org/rmi.

 

Current market conditions decreased one point from the first quarter of 2018 to 57. Among its three major components, major additions and alterations waned one point to 55, minor additions and alterations decreased two points to 58, and the home maintenance and repair component rose two points to 59.

remodeling market indexThe future market indicators gained four points from the previous quarter to 59. Calls for bids fell two points to 55, amount of work committed for the next three months increased two points to 56, the backlog of remodeling jobs jumped nine points to 66 and appointments for proposals rose seven points to 61.

“Improving economic growth is supporting demand for home remodeling,” said NAHB Chief Economist Robert Dietz. “However, remodelers have to deal with rising material prices, especially lumber, and the continued shortage of labor to keep prices competitive. The labor shortage is also a factor contributing to the increasing backlog of remodeling jobs.”

Most Popular Articles

FTC fines Opendoor $62M for deceptive practices HW+

The FTC alleges that Opendoor pitched its services to potential home sellers by saying they could make more money selling to the iBuyer than via the open market. The government says that was untrue.

Aug 01, 2022 By

Latest Articles

Power buyer Ribbon lays off 136 employees HW+

Ribbon said the layoff decisions were based on what qualities the employees could offer the company, including “technical depth, institutional knowledge, domain expertise, strong customer service and qualities of a winning attitude, including collaboration, compassion and craftsmanship.”

Aug 08, 2022 By