New Index Sees Remodeling Industry Growth
The residential remodeling market shows clear signs of recovery, with activity in most regions in 2010 returning to 2007 and early-2008 levels, according to the BuildFax Remodeling Index. The Northeast represented the most notable exception to this trend, researches note, with 2010 marking the fifth straight year of decline in the BFRI.
The new index has been created by BuildFax, a provider of building permit data based in Austin, Texas. In releasing its latest statistics, the firm states residential remodeling rose for the 14th straight month in December, up 18 percent year-over-year.
“Throughout the country—even in the lagging Northeast—the last quarter of 2010 shows promise for increased remodeling activity in 2011,” says Joe Emison, BuildFax vice president of research and development. “The winter is always the trough of the seasonal remodeling cycle, and December 2010 was better than or equal to December 2009 in every region of the country.”
Researchers note that remodeling activity appears to be far more robust than the new housing market, which is still at less than half of its 2006 and 2007 volume and shows no sign of significant growth.