WASHINGTON, DC — Residential remodelers “remain positive” about the market, although a significant number have “seen inflation take a toll on consumer budgets, causing many to pull back on projects,” the National Association of Remodelers said.
The Washington, DC-based NAHB released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the fourth quarter of 2022, posting a reading of 66, declining 17 points compared to the fourth quarter of 2021. 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.
“Although the RMI was down sharply year-over-year, it’s encouraging that it remains in positive territory,” said NAHB Chief Economist Robert Dietz.
“NAHB expects remodeling activity to experience a slowing nominal growth rate, but to outperform new residential construction,” Dietz noted. “Moreover, remodeling should start to pick up buy the end of 2023 as interest rates on home improvement loans begin to trend downward.”