The National Association of Home Builders (NAHB) has reported a stable sentiment in the remodeling market for the second quarter, according to the latest NAHB/Westlake Royal Remodeling Market Index (RMI). The index posted a reading of 65, a slight decline from the previous quarter’s 66.
The RMI survey evaluates remodelers’ perceptions of five market components, rating each as “good,” “fair,” or “poor.” The index is scaled from 0 to 100, where a number above 50 indicates that more respondents view conditions as good rather than poor.
The Current Conditions Index, averaging three components—large remodeling projects, moderately-sized projects, and small projects—recorded a score of 73, down by one point. The Future Indicators Index, which averages the rate of leads and inquiries and the backlog of remodeling projects, registered at 58, also a one-point decline.
“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, Kansas. “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 homeowners.”
NAHB Chief Economist Robert Dietz noted the RMI’s positive standing and projected stability in remodeling activity through 2024. “Some homeowners 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,” he explained.
Breaking down the Current Conditions Index, the component for large remodeling projects ($50,000 or more) remained steady at 70. Moderate remodeling projects ($20,000 to $50,000) also held firm at 74, while small-sized remodeling projects (under $20,000) decreased by two points to 75.
The Future Indicators Index reflected a two-point drop in the rate of leads and inquiries, now at 55, and a slight one-point dip in the backlog of remodeling jobs, now at 60.
Despite minor declines, the overall RMI remains comfortably in positive territory, suggesting continued confidence in the remodeling market.
For the full RMI tables, please visit nahb.org/rmi.
