The National Association of Home Builders (NAHB) recently released the NAHB/Westlake Royal Remodeling Market Index (RMI) for the first quarter of 2024, showing a reading of 66, down one point from the previous quarter. According to the survey, remodelers continue to view market conditions positively, with an index number above 50 indicating a higher share view conditions as good than poor.
NAHB Remodelers Chair Mike Pressgrove from Topeka, Kan, commented on the demand for remodeling, stating, "Demand for remodeling remains solid, especially among customers who don’t need to finance their projects at current interest rates." Pressgrove also highlighted that construction costs are still a concern in certain areas, similar to the situation at the end of the previous year.
NAHB Chief Economist Robert Dietz noted that an RMI of 66 aligns with NAHB's prediction for stable remodeling spending in 2024. Dietz pointed out that rising costs for construction labor and building materials are impeding faster growth in the industry.
The Current Conditions Index, which includes large, moderately-sized, and small remodeling projects, remained positive with an average of 74, unchanged from the previous quarter. Specifically, the component measuring large remodeling projects stayed at 70, moderate projects dropped to 74, and small-sized projects edged down to 77.
The Future Indicators Index, which tracks the rate of leads and inquiries as well as the backlog of remodeling jobs, averaged 59, unchanged from the previous quarter. The component measuring the rate of leads and inquiries increased to 57, while the backlog of remodeling jobs dropped to 61.
The overall positive sentiment in the remodeling market is reflected in the RMI, indicating that more remodelers view market conditions favorably. For further details and the full RMI tables, interested parties can visit nahb.org/rmi.
