Confidence in remodeling sector rises

Listen to this article

Confidence in the remodeling sector improved in the fourth quarter, according the National Association of Home Builders’ Remodeling Market Index.

The overall index, which tracks remodelers’ sentiment on current conditions and future growth in the sector, rose to 58 in the latest quarter from 57 in the third quarter. A level of 50 is neither positive nor negative.

The RMI’s current market conditions index stood at 56, unchanged from the previous quarter. The subsector of major additions and alterations rose to 54 from 52 in the third quarter. Smaller remodeling projects decreased one point to 56, while home maintenance and repair remained at 58.

At 59, the RMI’s future market conditions index gained a point from the previous quarter. Among its four components, calls for bids and job backlogs each rose one point from the previous quarter, to 58 and 61, respectively. The amount of work committed for the next three months and appointments for proposals each rose two points in the same period to 57 and 60, respectively.

“The steady, performance of the Remodeling Market Index over the past six quarters is consistent with our projection for continued modest growth in remodeling spending,” said NAHB Chief Economist David Crowe in a written statement. “Constraints to faster growth include labor shortages and homeowners who are having trouble obtaining loans for larger projects.”

The NAHB is a trade association that advocates for the housing industry. The organization has more than 140,000 members.