flexiblefullpage - default
interstitial1 - interstitial
Currently Reading

Remodeler Market Sentiment Edges Up Despite Challenges

billboard -

Remodeler Market Sentiment Edges Up Despite Challenges

Market continues to grow, but slower than 2022 

By NAHB Remodelers May 3, 2023
remodeling market
Photo: bmak | stock.adobe.com

Remodelers’ sentiment in the market remained positive for the 12th consecutive quarter.

The NAHB/Westlake Royal Remodeling Market Index (RMI) posted a reading of 70 in the first quarter of 2023, up a point from the previous quarter.

The RMI has remained stronger over the last year than its companion index of the single-family market, the NAHB/Wells Fargo Housing Market Index (HMI).


Slowed Growth in Remodeler Market for 2023

Despite remodelers’ more optimistic view, many feel that continued material shortages and higher interest rates are a drag on the market. Still, the RMI’s first quarter reading of 70 is consistent with NAHB economists’ forecasts that the remodeling industry will continue to enjoy growth in 2023, but not at the extraordinary pace seen in 2022.

To produce the RMI, NAHB Economics asks remodelers to rate several aspects of the residential market. The responses are converted into an index, where any number above 50 indicates that a higher share of respondents views conditions as good than poor.


remodeling market
The RMI is a quarterly index that looks at remodelers’ self-reported leads, backlog, and project size. Any number above 50 indicates that a higher share views conditions as good than poor.


Current and Future Conditions

The average of two major component indices make up the RMI: the Current Conditions Index and the Future Indicators Index. 

The Current Conditions Index is an average of three subcomponents: the current market for large remodeling projects ($50,000 or more), moderately-sized projects ($20,000 to $49,999), and small projects (less than $20,000).

In the first quarter of 2023, the Current Conditions index was 75, dropping 2 points from the fourth quarter of 2022. Quarter over quarter, two of the subcomponents decreased: large remodeling projects fell 3 points and small projects declined 2 points; while moderately-sized projects remained unchanged. Higher interest rates are reportedly affecting larger projects.

The Future Indicators Index is an average of two subcomponents: the current rate at which leads are coming in and the current backlog of remodeling projects.  

In Q1 of 2023, the Future Indicators Index was 64, which is 2 points higher than the fourth quarter of 2022. Quarter over quarter, both subcomponents increased by 2 points.



Add new comment

Plain text

  • No HTML tags allowed.
  • Web page addresses and email addresses turn into links automatically.
  • Lines and paragraphs break automatically.
leaderboard2 - default

Related Stories

Marvin Releases Switchable Privacy Glass Window

The privacy glass windows can be purchased from Marvin's Direct Glaze windows

Gas Ban in New Construction Considered by Chicago

The mayor-backed ordinance would impact all new construction

Working Toward Affordable, Resilient Homes

A new natural disaster protection act from NAHB aims to support hazard mitigation projects

The Remodeling Market Could Turn in Q4, Says Harvard

Repair and remodeling spending could see an uptick at the end of the year

Seattle Contractor Finds Grenade During Remodel

Polar Bear Construction Owner Vadim Kharkhavyy and the owner were equally shocked

New Independent Contractor Rule Faces Lawsuit

The Department of Labor submitted new criterion to judge when classifying workers

New Insulation Innovation Reshapes Our Thinking of Refrigeration

Whirlpool Corporation's latest innovation allows refrigerators to do more and be more

Jericho Home Improvements CEO Killed in Kansas City

John Bartrom founded the largest independent kitchen and bath remodeling company in the country

DC Attorney General Sues Multi-state Remodeler Curbio

A recent lawsuit filed alleges false promises made by contractor Curbio

New FCC Rules Will Force Home Improvement Industry to Adjust Business Practices

The regulations require more robust consumer consent and will impact contractors and lead aggregators

boombox2 -
halfpage2 -
native1 -

More in Category

native2 -
halfpage1 -
leaderboard1 -