Remodeling Industry Confidence Up Strongly Year over Year
"The remodeling market has recovered from the pandemic and continues to grow as the economy strengthens," says Steve Cunningham, NAHB Remodelers chair. "Increased household savings during the second half of 2020 have lifted budgets available for home improvement projects. However, demand is stronger than many remodelers can handle, resulting in being forced to turn work away."
In the first quarter, all components and subcomponents of the RMI were 82 or above. The Current Conditions Index averaged 89, a 31-point increase from the first quarter of 2020, with large remodeling projects ($50,000 or more) yielding a reading of 85, moderately-sized remodeling projects (at least $20,000 but less than $50,000) at 90 and small remodeling projects (under $20,000) with a reading of 92. These readings were all up substantially year-over-year, indicating strength for remodeling across all types of projects.
The Future Indicator Index averaged 84, up 45 points from the first quarter of 2020, with the rate at which leads and inquiries are coming in at 86 and the backlog of remodeling jobs at 82.
"The large year-over-year increase in the RMI signals a very strong recovery in remodeling activity since the onset of the pandemic, and activity should continue to grow into 2021 as the economy accelerates with an easing of the pandemic," says Robert Dietz, NAHB chief economist. "However, material availability and prices continue to be a challenge for remodelers and their customers."