NAHB’s Remodeling Market Index (RMI) posted a reading of 58 in the third quarter of 2018, remaining stable from the previous quarter. The RMI has been consistently above 50 — indicating the majority of remodelers report market activity is higher compared to the previous quarter — since the second quarter of 2013. The overall RMI averages current remodeling activity and future indicators.
“Remodelers across the country are seeing home owner demand remain strong through the midpoint of the year,” said NAHB Remodelers Chair Joanne Theunissen, CGP, CGR, a remodeler from Mt. Pleasant, Mich. “Both positive home price growth — albeit at a slightly slower rate — and good consumer confidence are supporting the steady remodeling market.”
Current market conditions rose one point from the previous quarter to 58. Among its three primary components:
- Major additions and alterations rose one point to 56
- Minor additions and alterations decreased one point to 57
- Home maintenance and repair rose one point to 60
The future market indicators remained the same as the previous quarter at 59. Its individual components include:
- Calls for bids rose two points to 57
- Amount of work committed for the next three months increased three points to 59
- Backlog of remodeling jobs fell four points to 62
- Appointments for proposals decreased two points to 59
“The stability of the RMI reflects offsetting trends in the remodeling market,” said NAHB Chief Economist Robert Dietz. “A sound economy with low unemployment and easing lumber prices are being counterbalanced by rising interest rates and the ongoing labor shortage.”
For the full RMI tables, please visit nahb.org/rmi. For more information about remodeling, visit nahb.org/remodel.
