U.S. Remodelers Optimism Declines for Third Consecutive Quarter

The National Association of Home Builders (NAHB) on Thursday (10-10-24), released its NAHB/Westlake Royal Remodeling Market Index (RMI) for Q3 2024. The RMI has declined to a reading of 63, which is 2-points lower than its Q2 reading.

The NAHB says that remodelers remain optimistic about the market despite the overall RMI trending lower for the third consecutive quarter. Some have potential customers citing the upcoming election as a reason for putting large projects on hold. Remodelers also continue to face various headwinds such as difficulty finding skilled construction labor and higher interest rates. Nevertheless, the overall RMI reading of 63 is consistent with NAHB’s forecast for steady 2% growth in remodeling spending over the next two years.

The NAHB reports that in Q3 2024, the Current Conditions Index averaged 72, declining one point from the previous quarter. All three components remained well above 50 in positive territory: the component measuring small-sized remodeling projects (under $20,000) rose two points to 77, while both the component measuring moderate remodeling projects (at least $20,000 but less than $50,000) and the component measuring large remodeling projects ($50,000 or more) fell three points to 71 and 67, respectively.

The NAHB notes that in Q3 2024, its Future Indicators Index was 55, down three points from the previous quarter. Quarter-over-quarter, the component measuring the backlog of remodeling jobs fell three points to 57 and the component measuring the current rate at which leads and inquiries are coming in dropped two points to 53.