US Remodeler Sentiment Inches Higher in 2023Q4
Remodeling Market Sentiment Improves in Fourth Quarter
The National Association of Builders (NAHB)/Westlake Royal Remodeling Market Index (RMI) for 2023Q4 was released on Thursday (1-18-24). The RMI for Q4 increased 2 points to a reading of 65, up from 63 in Q3.
The RMI is based on a survey that asks remodelers to rate various aspects of the residential market as “good,” “fair,” or “poor.” Responses from each question are converted to an index that lies on a scale from 1 to 100, where an index number above 50 indicates that a higher share view conditions as good rather than poor.
NAHB notes that remodelers’ sentiment was quite positive at the end of 2023, when seasonally adjusted for the slowdown that invariably occurs during that part of the year. High costs remain an issue in some places, but in many markets, customers seem to have adjusted to the unavoidably higher prices. Even though the RMI is down slightly year-over-year, the index remains solidly in positive territory—a trend observed since 2020Q2.
Looking forward, NAHB expects market conditions to improve throughout 2024 as interest rates continue to decline.
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