The National Association of Home Builders’s Remodeling Market Index (RMI) for the fourth quarter of 2020 posted a reading of 79, signaling residential remodelers’ strong confidence in their markets, for projects of all sizes, NAHB reports.
“The remodeling market was consistently strong throughout 2020, as home owners had more time on their hands to improve their homes and add space and efficiency,” said NAHB Remodelers Chair Tom Ashley, Jr., CAPS, CGP, CGR, a remodeler from Denham Springs, La. “However, activity slowed a bit at the end of the year as a result of the rising Covid-19 cases and an increase in economic insecurity.”
The RMI survey asks remodelers to rate five components of the remodeling market as “good,” “fair” or “poor.” Each question is measured on a scale from 0 to 100, where an index number above 50 indicates that a higher share view conditions as good than poor.
The Current Conditions Index is an average of three of these components: the current market for large remodeling projects, moderately-sized projects and small projects. The Future Indicators Index is an average of the other two components: the current rate at which leads and inquiries are coming in and the current backlog of remodeling projects. The overall RMI is calculated by averaging the Current Conditions Index and the Future Indicator Index. Any number over 50 indicates that more remodelers view remodeling market conditions as good than poor.
The Leading Indicator of Remodeling Activity (LIRA) released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University, also demonstrated strong predictions for the year ahead.
See more at NAHB’S NAHBNow blog.