Remodelers’ Confidence Remains Strong

by Kacey Larsen

According to the National Association of Home Builders (NAHB), the Remodeling Market Index (RMI) rose one point to 58 in the second quarter of 2018. Listing above 50 for 21 consecutive quarters, the second quarter 2018 RMI indicates more remodelers report market activity higher than report it lower (compared to the previous quarter).

As a composite measure of current market conditions and future market indicators, the second quarter RMI’s 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.

Future market indicators gained four points to 59 in the second quarter. Among its components, calls for bids fell two points to 55; amount of work committed for the next three months increased two points to 56; the backlog of remodeling jobs jumped nine points to 66; and appointments for proposals rose seven points to 61.

This quarter’s RMI reflects a strong remodeling industry supported by continued economic growth. However, remodelers are continuing to face supply-side challenges such as rising material costs and labor shortages.

For full RMI tables, visit nahb.org/rmi, or to learn more about remodeling, visit nahb.org/remodel.

Originally reported by Carmel Ford, NAHB economist. 

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