Remodelers' Confidence Falls in First Quarter of 2019

Window & Door
April 18, 2019
Markets

The National Association of Home Builders' Remodeling Market Index posted a reading of 54 in the first quarter of 2019, falling three points from the previous quarter. The RMI has been consistently above 50—indicating that more remodelers report market activity is higher compared to the prior quarter than report it is lower—since the second quarter of 2013. The overall RMI averages current remodeling activity and future indicators.

"The demand for remodeling is strong in many parts of the country due to insufficient home construction and an aging housing stock," says Tim Ellis, NAHB Remodelers chair. "However, it can be difficult to find skilled labor for remodeling projects."

Current market conditions dipped four points from the previous quarter. Among its three major components, major additions and alterations fell seven points, minor additions and alterations waned one point and the home maintenance and repair component decreased three points.

The future market indicators dropped two points from the previous quarter. Calls for bids fell three points, amount of work committed for the next three months increased two points, the backlog of remodeling jobs fell five points and appointments for proposals remained steady.

"The Remodeling Market Index declined in the first quarter but remains over 50, indicating the market will continue to expand at modest rates," says Robert Dietz, NAHB chief economist. "NAHB's forecast calls for slowing growth, given declining home price appreciation and existing home sales volume, combined with rising construction costs."