July 22, 2024
(press release)
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The National Association of Home Builders (NAHB) released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the second quarter, posting a reading of 65, down one point compared to the previous quarter. 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 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. “Although some remodelers are reporting a slowdown, most continue to see solid demand for remodeling projects, subject to normal seasonal fluctuations,” said NAHB Remodelers Chair Mike Pressgrove, a remodeler from Topeka, Kan. “In some markets, elevated interest rates have caused some customers to purchase improvement projects with cash rather than loans. However, this option is only available for wealthier home owners.” “The RMI remains solidly in positive territory, and NAHB continues to project remodeling activity has stabilized at a healthy level in 2024,” said NAHB Chief Economist Robert Dietz. “Some home owners may be tempted to delay projects waiting for interest rates to decline, but this is offset by others who want to work with a remodeler now, fearing inflation may increase project costs if they wait.” The Current Conditions Index averaged 73, declining one point compared to the previous quarter. All three components remained well above 50 in positive territory in the second quarter: the component measuring large remodeling projects ($50,000 or more) remained even at 70, the component measuring moderate remodeling projects (at least $20,000 but less than $50,000) remained even at 74, and the component measuring small-sized remodeling projects (under $20,000) fell two points to 75. The Future Indicators Index averaged 58, declining one point compared to the previous quarter. The component measuring the current rate at which leads and inquiries are coming in dropped two points to 55, and the component measuring the backlog of remodeling jobs edged down one point to 60. For the full RMI tables, please visit nahb.org/rmi- Opens A Page.
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