RMI Holds Steady in 2nd Quarter

Filed in Committees and Councils, Economics, Remodeling by on July 21, 2016 1 Comment

The NAHB Remodeling Market Index (RMI) posted a reading of 53 in the second quarter.

Although it slipped one point from the previous quarter, it is still the 13th consecutive quarter with a reading above 50, indicating that more remodelers report market activity is higher (compared to the prior quarter) than report it is lower.

new kitchen

A Falls Church, Va., kitchen remodel by Sonny Nazeman won a 2015 Best in American Living award.

The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity.

“Overall, remodelers are reporting steady work in the second quarter,” said NAHB Remodelers Chair Tim Shigley, CAPS, CGP, GMB, GMR, a remodeler from Wichita, Kansas. “With an increase in calls for bids, we should see the market pick up slightly moving forward.”

The RMI’s current market conditions index came in at 54, decreasing by a single point from the previous quarter. Among its components, major additions and alterations dipped three points to 52, minor additions and alterations fell one point to 53 and maintenance and repair remained unchanged at 56.

At 53, the RMI’s future market conditions index remained unchanged from the previous quarter. Among its four components, calls for bids increased two points to 53, the amount of work committed rose one point to 53 and appointments for proposals stayed even at 52. Meanwhile, the backlog of remodeling jobs decreased five points to 53.

“At slightly above 50, the overall RMI is in line with our forecast of steady growth in the remodeling market for 2016,” said NAHB Chief Economist Robert Dietz. “Current economic conditions and a rising need to improve the nation’s aging housing stock in the face of changing demographics are supporting growth for the remodeling sector.”

For data tables, visit nahb.org/rmi.

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  1. I’m sure the index would be higher if we knew we had a labor force to fulfill our demand for professional remodeling services. In my case, we have a four month backlog, some owners willing to wait for our high quality product, others going elsewhere to fit into their “I’m ready now ” time frame.

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