Remodeler Index Hits 82 in Q3, Says NAHB
Washington, DC, October 16, 2020-The National Association of Home Builders (NAHB) released its Remodeling Market Index (RMI) in the third quarter of 2020, posting a reading of 82. The finding is a signal of residential remodelers’ strong confidence in their markets, for projects of all sizes. The demand for home improvement is robust given the importance of home for Americans as the economy recovers and adapts from the impacts of Covid-19.
The RMI survey asks remodelers to rate five components of the remodeling market as “good, ” “fair” or “poor.” Each question is measured on a scale from 0 to 100, where an index number above 50 indicates that a higher share view conditions as good than poor.
The Current Conditions Index is an average of three of these components: the current market for large remodeling projects, moderately-sized projects and small projects. The Future Indicators Index is an average of the other two components: the current rate at which leads and inquiries are coming in and the current backlog of remodeling projects. The overall RMI is calculated by averaging the Current Conditions Index and the Future Indicator Index. Any number over 50 indicates that more remodelers view remodeling market conditions as good than poor.
In the third quarter, all components and subcomponents of the RMI were 77 or above. The Current Conditions Index averaged 86, with large remodeling projects ($50,000 or more) yielding a reading of 80, moderately-sized remodeling projects (at least $20,000 but less than $50,000) at 86 and small remodeling projects (under $20,000) with a reading of 90. These readings indicate that the strength for remodeling is felt across all types of projects.
The Future Indicators Index averaged 77, with the rate at which leads and inquiries are coming in at 78 and the backlog of remodeling jobs at 77.