- The National Association of Home Builders recorded a second-quarter 2016 Remodeling Market Index (RMI) reading of 53, down one point from the first quarter, but still signaling positive renovation activity among remodeling firms.
- The second quarter was the 13th straight quarter with a reading above 50. An RMI score above 50 means that more remodelers have reported increased activity than have reported a decrease when compared to the previous quarter.
- Of the total RMI, current market conditions dropped one point to 54, with the biggest drop in major additions and alterations (three points to 52). Future market conditions held steady at 53, with calls for bids (up two points to 53) helping to counterbalance a five-point drop in backlog of remodeling jobs to 53.
Tim Shigley, the NAHB's 2016 remodelers chair, said that although the latest overall reading indicated remodeling activity went largely unchanged from Q1 to Q2, the uptick in calls for bids should result in a future "pick up" in the market.
This quarter's RMI is compatible with the NAHB's predictions for consistent growth in the remodeling sector, said Robert Dietz, NAHB chief economist. "Current economic conditions and a rising need to improve the nation’s aging housing stock in the face of changing demographics," Dietz said in a press release, "are supporting growth for the remodeling sector.”
The second-quarter Houzz Renovation Barometer report reflected high remodeling industry confidence, although the renovation resource website said it found a "slight weakening in design service activity." Older homeowners from Generation X and the Baby Boom demographics were the most active in home remodeling projects, while millennial renovations grew at a much slower pace. Houzz reported more homeowners were choosing high-end remodeling products and an increase in kitchen and bathroom remodels, as well as smart home, green and energy-related upgrades. Remodelers also reported an uptick in aging-in-place renovations.