Remodeling Activity Up, Per NAHB

Remodeling confidence went up in the second quarter of this year, up one point to 58 on the National Association of Home Builders' Remodeling Market Index (RMI).

Future market indicators rose four points to 58 on the RMI for Q2, due to the growing backlog of remodeling projects (up nine points), appointments for proposals (up seven points), and a two-point increase for the share of work committed for the next three months, according to the NAHB. Research associate Carmel Ford says, "The increase in this quarter’s RMI reflects a strong remodeling industry supported by continued economic growth," adding that supply-side shortages remain a persistent problem.

A RMI reading above 50 indicates that more remodelers report market activity is higher than report it is lower compared to the prior quarter. The RMI has been above 50 for 21 consecutive quarters. The RMI is a composite measure of current market conditions and future market indicators. In the second quarter, current market conditions decreased one point to 57. Among its three major components, major additions and alterations waned one point to 55, minor additions and alterations decreased two points to 58, and the home maintenance and repair component rose two points to 59.

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