WASHINGTON, DC — Remodelers in many parts of the U.S. remain positive about the market, although a growing number are reporting signs of a slowdown due to ongoing labor shortages, high material prices and rising interest rates, the National Association of Home Builders said.
The Washington, DC-based NAHB released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the third quarter of 2022, posting a reading of 77, declining 10 points compared to the third quarter of last year. The NAHB/Westlake Royal RMI survey asks remodelers to rate various components of the remodeling market, including current and projected activity for large, moderately sized projects and small projects.
“Home equity, strong demand for work at home and an aging housing stock are supporting demand for remodeling,” said NAHB Chief Economist Robert Dietz, adding, however, that interest rates are having a negative impact, albeit more so on new construction than remodeling.”
After a decline in 2022, NAHB said it expects a modest increase in residential remodeling activity in 2023, in contrast to the rate of new construction, which the trade association anticipates will continue to decline.