US Remodeler Sentiment Trends Lower in Q3
Remodeling Market Sentiment Declines in Third Quarter of 2023
The National Association of Builders (NAHB)/Westlake Royal Remodeling Market Index (RMI) for Q3 was released on Thursday (10-12-23). According to the report, the RMI for Q3 declined 3 points to a reading of 65, down from 68 in Q2.
The RMI is based on a survey that asks remodelers to rate various aspects of the residential market “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.
The NAHB notes that while there is still demand for remodeling, some customers are pulling back on potential projects due to higher prices and increased interest rates. Even though remodeling spending has experienced some slow down over the past year, it still accounts for 43% of total residential construction as of June, up from 31% at the beginning of 2022. The NAHB is forecasting that the remodeling market will experience mild growth in both 2024 and 2025.
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