The National Association of Home Builders’ NAHB/Westlake Royal Remodeling Market Index (RMI) for the first quarter posted a reading of 62. While this reading is down two points from the previous quarter, it is still solidly in positive territory.
“Remodeler sentiment remained generally positive in the first quarter, as it was at the end of last year, even as many remodelers are still working to manage their customers’ cost expectations,” said NAHB Remodelers Chair Elliott Pike, a remodeler from Homewood, Ala. “Only a relatively small share report homeowners putting projects on hold due to economic and political uncertainty.”
The NAHB/Westlake Royal RMI survey asks remodelers to rate five components of the remodeling market as “good,” “fair,” or “poor.” Each question is measured on a scale from 0 to 100, where an index number above 50 indicates that a higher share view conditions as good than poor. The results of the RMI are seasonally adjusted.
The Current Conditions Index is an average of three components: the current market for large remodeling projects, moderately sized projects, and small projects. The Future Indicators Index is an average of two components: the current rate at which leads and inquiries are coming in and the current backlog of remodeling projects. The overall RMI is calculated by averaging the Current Conditions Index and the Future Indicators Index. Any number over 50 indicates that more remodelers view remodeling market conditions as good than poor.
“Ongoing positive remodeler sentiment is consistent with the NAHB outlook, given an aging housing stock and the lock-in effect of elevated mortgage rates keeping owners in their homes,” said NAHB Chief Economist Robert Dietz. “In the first quarter, remodelers reported that 21% of their projects were associated with home improvements made shortly after a purchase, while only 4% were for homeowners’ projects to ready a home for sale.”
The Current Conditions Index averaged 70, edging down one point compared to the previous quarter. All three components remained well above 50 in positive territory. The component measuring large remodeling projects ($50,000 or more) dipped two points to 67, the component measuring moderate remodeling projects (at least $20,000 but less than $50,000) dropped two points to 69, and the component measuring small-sized remodeling projects (under $20,000) increased one point to 74.
The Future Indicators Index averaged 54, down two points compared to the previous quarter. The component measuring the current rate at which leads and inquiries are coming in dipped one point to 53, and the component measuring the backlog of remodeling jobs dropped three points to 55.
For the full RMI tables, visit nahb.org/rmi.
About the National Association of Home Builders
The National Association of Home Builders (NAHB) is a Washington-based trade association representing more than 140,000 members involved in homebuilding, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing, and other aspects of residential and light commercial construction. NAHB is affiliated with 700 state and local homebuilder associations around the country. NAHB’s builder members will construct about 80% of the new housing units projected for this year.
About NAHB Remodelers
NAHB Remodelers is America’s home for professional remodelers, representing the more than 53,000 members of the National Association of Home Builders (NAHB) who are involved in the remodeling industry. Founded in 1982, the organization provides information, education, and designation programs to improve the business and construction expertise of its members and to enhance the professional image of the industry. Its membership incorporates nearly 100 local councils across the nation.
