Optimism for the Remodeling Market

November 2016

The National Association of Home Builder (NAHB) Remodeling Market Index (RMI) posted a reading of 57 in the third quarter for 2016, an increase of four points from the previous quarter.

The overall RMI is an average of two main sub-indices, one that tracks current market conditions and another tracking future market conditions. Along with the current indicators, future market conditions increased by 5 points from the previous quarter to 58.

An RMI above 50 indicated that more remodelers report market activity is higher compared to the previous quarter. “Remodelers nationwide are seeing increased demand for major and minor addition jobs and calls for bids, leading to an increase in both current and future market indicators,” says 2016 NAHB Remodelers chair Tim Shigley, CAPS, CGP, GMB, GMR, a remodeler from Wichita, Kan. “However, ongoing labor shortages continue to challenge their ability to meet the increased demand.”

Remodeling is currently being driven by the rising home values and tightening of for-sale inventories in many markets around the county.

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