flexiblefullpage - default
interstitial1 - interstitial
Currently Reading

Remodeling Market Index highlights upward trend in remodeling activity

Advertisement
billboard -
Industry Data & Research

Remodeling Market Index highlights upward trend in remodeling activity

Remodeling sentiment rose to the highest level in five years, according to the National Association of Home Builders' (NAHB) Remodeling Market Index (RMI) for the fourth quarter of 2011.


By HZ Staff January 26, 2012
Remodeling Market Index, RMI, NAHB, fourth quarter, 2011

Remodeling sentiment rose to the highest level in five years, according to the National Association of Home Builders' (NAHB) Remodeling Market Index (RMI) for the fourth quarter of 2011. Released today, the RMI increased to 46.6 in the fourth quarter from 41.7 in the third quarter.


In the fourth quarter, the RMI component measuring current market conditions rose to 48.4 from 43.0. The component measuring future indicators of remodeling business was also positive, increasing to 44.8 from 40.4.



An RMI below 50 indicates that a majority of remodelers report market activity is lower compared to the prior quarter. The overall RMI averages ratings of current remodeling activity with indicators of future activity.



"As more consumers remain in their homes rather than move in this economy, remodelers benefited from a gradual increase in home improvement activity, taking us to a five-year high," said NAHB Remodelers Chairman Bob Peterson, CGR, CAPS, CGP, a remodeler from Ft. Collins, Colo. "2011 ended on a strong note for the remodeling industry."



Current market conditions improved significantly in all four U.S. regions over the third quarter of 2011. The RMI reported higher market activity in two important categories: major additions 52.3 (from 45.2) and minor additions 50.1 (from 45.7).



Future market indicators in each region also experienced gains from the previous quarter. Two of the indices reported a level over 50: calls for bids (50.7, up from 45.4) and appointments for proposals (50.1, up from 43.3). Work committed for the next three months only rose to 31.5 from 29.9.

"With several key components above 50, the latest RMI provides reason for guarded optimism going forward," said NAHB Chief Economist David Crowe. "The residential remodeling market has been improving gradually, mirroring the trend in other segments of the housing market. Stringent lending requirements and economic uncertainty continue to be a drag on demand, but we expect a modest growth in remodeling activity to continue throughout 2012."

leaderboard2 - default

Related Stories

The Latest Data on Construction's Workforce

To close the housing deficit in the United States, the industry needs more skilled workers. Here's where construction's workforce stands

The Remodeling Market Could Turn in Q4, Says Harvard

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

Building Materials Show Stability in 2023

Although supply chain bottlenecks have eased in recent months, shortages of some key materials persist.

Design Trends to Watch in 2024

What’s in and out for the upcoming year? Remodeling designers share insights

Remodeler Sentiment Remains Positive

Surveys reveal a strong outlook, and how the aging population will lift remodeling

Next Year to Challenge Remodeling, Says Harvard

The latest LIRA report predicts greater decrease in home improvement and remodeling spending

Top Siding and Window Colors for 2024

A recent survey identifies the top siding and window color choices for American homeowners

What Does the Past and Present of Remodeling Tell Us About the Future?

On this episode of Remodeling Mastery, industry advisor Mark Richardson shares bits of his keynote presentation at The Pinnacle Experience, highlighting different elements that shape the immediate future of the remodeling market

Remodeling Loan Data Reveals Geographical, National Trends

An analysis of loan data shows the most popular, and least popular, states for home improvement

Remodeling Spending to Decline at Faster Rate, Says Harvard

Remodeling spending may drop for the first time since 2020, according to predictions from Harvard's Remodeling Futures Program

Advertisement
boombox2 -
Advertisement
halfpage2 -
Advertisement
native1 -

More in Category




Advertisement
native2 -
Advertisement
halfpage1 -
Advertisement
leaderboard1 -