NAHB National Association of Home Builders : Remodelers Riding Wave of Steady Optimism

The remodeling market has enjoyed a solid stretch of growth since 2011. And despite economists forecasting that growth will likely become more gradual in the years ahead, there remains a sense of confidence among most remodelers.

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A bathroom remodel project of the 2016 NAHB Remodeler of the Year, Michael Menn.

NAHB's Remodeling Market Index (RMI) posted a reading of 53 in the final months of 2016, down slightly from the previous quarter, but on par with the first half of 2016.

This marks 15 consecutive quarters in which the majority of remodelers report that business activity in their market has increased from the previous quarter.

'Many remodelers are seeing consumers commit to larger, long-term home improvement projects,' said 2017 NAHB Remodelers Chair Dan Bawden, CAPS, GMB, CGR, CGP, a remodeler from Houston. 'As Americans are seeing wages and home values rise overall, it gives them greater confidence to go ahead and invest in their homes.'

Among the RMI's most notable components, major additions and alterations dropped one point to 53, demand for smaller remodeling projects decreased by four points to 52, and the home maintenance and repair component declined by five points to 54.

The index measuring future market indicators reached 52, about the same level as early 2016, but six points lower than in the third quarter. Among its four components, calls for bids and appointments for proposals fell to 49 and 54, respectively, the backlog of remodeling jobs dropped three points to 55, and the amount of work committed declined five points to 50.

'At 53, the Remodeling Market Index is consistent with NAHB's forecast that remodeling market activity will continue to grow over the next two years, but at a more moderate annual rate of 1% to 2%,' said NAHB Chief Economist Robert Dietz.

To view all of the RMI tables, please visit nahb.org/rmi, or visit nahb.org/remodel for more information about remodeling.

You can also connect with and learn from other industry professionals by joining NAHB Remodelers' Facebook Group.