flexiblefullpage -
Currently Reading

Remodeling Market Index recedes slightly in second quarter

Advertisement
billboard -
Data & Research

Remodeling Market Index recedes slightly in second quarter

The second quarter results of the Remodeling Market Index (RMI) slipped under pressure from a softening labor market, according to the National Association of Home Builders (NAHB), dropping two points to 45.


By HZ Staff July 26, 2012
Remodeling Market Index, second quarter 2012, RMI, future activity, optimism

The second quarter results of the Remodeling Market Index (RMI) slipped under pressure from a softening labor market, according to the National Association of Home Builders (NAHB), dropping two points to 45. The downward adjustment comes after the RMI reached 48 twice in 2011, the highest reading since 2006.

The RMI is based on a quarterly survey of NAHB remodelers that asks them to rate current remodeling activity along with indicators of future activity, like calls for bids. An RMI below 50 indicates that more remodelers report market activity is lower (compared to the prior quarter) than report it is higher.

In the second quarter, the RMI component measuring current market conditions dropped to 46 from 49 in the previous quarter. The RMI component measuring future indicators of remodeling business remained unchanged at 44.

"Remodelers have some backlog of jobs and along with higher quality leads, this is making them cautiously optimistic about the near future," said NAHB Remodelers Chairman George "Geep" Moore Jr., GMB, CAPS, GMR and owner/president of Moore-Built Construction & Restoration Inc. in Elm Grove, La. "The positive outlook is constrained by continuing credit constraints and inaccurate appraisals that make customer financing difficult for big jobs like additions and whole house remodels."

In the South, the RMI rose by one point to 47, while in the West it was flat at 47. The RMI for the Northeast and Midwest regions fell by six points and four points, down to 42 and 46, respectively.

Among the detailed RMI components, two important indicators of future activity increased in the second quarter: backlog of jobs to 46 (from 43) and amount of work committed for the next three months to 43 (from 42). All indicators of current market conditions fell: major additions and alterations to 42 (from 44), minor additions and alterations to 47 (from 52) and maintenance and repairs to 50 (from 51).

Related Stories

Business

November Data: Custom Architects Weigh In, New Construction Trends, Contractor Confidence, and Material Price Changes

We've collected highlights from a number of data reports published throughout the industry in November

Codes & Standards

OSHA's Preliminary List of 2023's Most Frequently Cited Standards in Violations

Fall-related violations continue to plague the construction industry despite ample free education and resources 

Case Studies

New Pandemic Task Force to Enhance Building Safety

A soon-to-be-appointed Pandemic Task Force seeks to strengthen the built environment in the face of disease-related threats

Data & Research

October's Data From Around the Industry

In October, we saw reports on remodeling spending, individual septic system installations, and the widespread use of rate buydowns to sell new homes 

Custom Builder

Take Part in Our Annual Housing Forecast

The best way to understand the residential construction industry is to speak with residential construction professionals. And with that being said, we humbly ask for your input in this year's survey

Custom Builder

How the Zero Energy Ready Home Update Emphasizes Resilience and Decarbonization

ZERH Version 2, released in December of 2022, will boost the efficiency and performance of single-family homes, preparing them for the increasingly oppressive weather

Business

How to Attract and Retain a Multi-Generational Workforce

Attracting skilled laborers remains a top priority for the construction industry, but according to Steve Bench, founder of Generational Consulting, the biggest roadblocks to recruitment and retainment are generational differences

Construction

Small-Duct, High-Velocity HVAC: What It Is and Why It Pairs Well With Modular Homes

Modular home manufacturers, builders, and owners now have many choices when it comes to indoor climate systems, but small-duct, high-velocity (SDHV) systems may be the perfect fit for these types of homes

Codes & Standards

An Introduction to the Zero Energy Ready Home Program

Late in 2022, the U.S. Department of Energy's Zero Energy Ready Home program announced the rollout of ZERH Single Family Version 2

Construction

Guest Column: Residential Construction Trends to Follow in 2023

PERC shares homeowner trends to keep on your radar in the New Year.

Advertisement
boombox1 -
Advertisement
boombox2 -
Advertisement
boombox3 -
Advertisement
native1 -

More in Category

Business

November Data: Custom Architects Weigh In, New Construction Trends, Contractor Confidence, and Material Price Changes

We've collected highlights from a number of data reports published throughout the industry in November

Codes & Standards

OSHA's Preliminary List of 2023's Most Frequently Cited Standards in Violations

Fall-related violations continue to plague the construction industry despite ample free education and resources 

boombox4 -
Case Studies

New Pandemic Task Force to Enhance Building Safety

A soon-to-be-appointed Pandemic Task Force seeks to strengthen the built environment in the face of disease-related threats

Data & Research

October's Data From Around the Industry

In October, we saw reports on remodeling spending, individual septic system installations, and the widespread use of rate buydowns to sell new homes 

boombox4 -
Advertisement
native2 -
Advertisement
halfpage1 -