Remodelers More Confident about Business Prospects

Filed in Remodelers by on April 20, 2017 0 Comments

french country kitchenThe NAHB Remodeling Market Index (RMI) rose to 58 in the first quarter of 2017, an increase of five points from the fourth quarter of 2016 and the highest reading in two years.

An RMI above 50 indicates that more remodelers report market activity is higher (compared to the prior quarter) than report it is lower. The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity.

“A milder-than-usual winter has led to increased remodeling activity and a positive outlook for spring,” said NAHB Remodelers Chairman Dan Bawden, CAPS, GMB, CGR, CGP, a Houston remodeler. “Remodelers are seeing stronger market conditions with customers more willing to spend money on both small and large projects.”

Among the RMI’s three major components, all saw an increase from last quarter, with major additions and alterations up four points, demand for smaller remodeling projects increasing by seven points and the home maintenance and repair component rising six points.

The index measuring future market indicators also reached 58, meeting the highest point of 2016. Calls for bids rose significantly from 49 to 59, amount of work committed grew from 50 to 58, the backlog of remodeling jobs increased from 55 to 62, and appointments for proposals remained constant at 54.

“At 58, the RMI is seeing broad-based improvement with all major components well over 50,” said NAHB Chief Economist Robert Dietz. “However, remodelers will face challenges meeting the demand as the labor shortage continues and costs for materials, such as lumber, are rising.”

See the full RMI tables and learn more about NAHB Remodelers.

Tags: ,

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement