The National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) posted a reading of 54 in the first quarter of 2019, falling three points from the previous quarter. The RMI has been consistently above 50—indicating that more remodelers report market activity is higher compared to the prior quarter than report it is lower—since the second quarter of 2013. The overall RMI averages current remodeling activity and future indicators.
“The demand for remodeling is strong in many parts of the country due to insufficient home construction and an aging housing stock,” said NAHB Remodelers Chair Tim Ellis, CAPS, CGP, CGR, GMR, Master CGP, a remodeler from Bel Air, Maryland. “However, it can be difficult to find skilled labor for remodeling projects.”
Current market conditions dipped four points from the previous quarter to 53. Among its three major components, major additions and alterations fell seven points to 49, minor additions and alterations waned one point to 55 and the home maintenance and repair component decreased three points to 56.
The future market indicators dropped two points from the previous quarter to 54. Calls for bids fell three points to 54, amount of work committed for the next three months increased two points to 54, the backlog of remodeling jobs fell five points to 54 and appointments for proposals remained steady at 55.
“The Remodeling Market Index declined in the first quarter but remains over 50, indicating the market will continue to expand at modest rates,” said NAHB Chief Economist Robert Dietz. “NAHB’s forecast calls for slowing growth, given declining home price appreciation and existing home sales volume, combined with rising construction costs.”