The National Association of Home Builders (NAHB)/Royal Building Products Remodeling Market Index (RMI) reports that residential remodelers’ sentiment in Q4 2021 increased to a reading of 83 — up four points from the Q4 2020 reading of 79. The increase is a sign, the report says, that reflects the positive sentiment of remodelers for projects of all sizes.
The RMI is an average of two major component indices: the Current Conditions Index and the Future Indicators Index.
The Current Conditions Index is an average of three subcomponents: the current market for large remodeling projects ($50,000 or more), moderately-sized projects ($20,000 to $49,999), and small projects (under $20,000). In Q4 2021, the Current Conditions Index was 89, a four-point increase compared to Q4 2020. All subcomponents also posted increases compared to Q4 2020.
The Future Indicators Index is an average of two subcomponents: the current rate at which leads and inquiries are coming in and the current backlog of remodeling projects. In the Q4 2021, the Future Indicators Index was 77, up five points from Q4 2020. Both subcomponents increased year-over-year as well: the current rate at which leads and inquiries are coming in rose three points to 74, and the backlog of remodeling jobs climbed seven points to 80.
The year-over-year increase in the RMI indicates ongoing strength in the remodeling market. Higher home equity provided resources for homeowners to improve their existing homes, supporting demand for remodeling. However, it is important to note that the RMI survey data was collected in late December and early January and do not fully capture recent increases in interest rates.
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.
Remodeler Sentiment Continues to Improve Year-over-Year