The remodeling industry is enjoying a marginally good spring, according to a new industry survey, holding onto gains secured last year.
A remodeling market index released by the National Association of Home Builders provides an overall survey reading of 70 for current conditions, up from the 69 reported in late 2022. Any figure over 50 indicates that remodelers view the state of their markets as good rather than poor.
What is officially called the NAHB/Westlake Royal Remodeling Market Index showed strength when remodelers were asked to evaluate future project leads, jumping from 62 last fall to 64 today.
Those remodelers, said Alan Archuleta, NAHB Remodelers Chair, are “generally optimistic about the home improvement market, although some are noting the negative effects of material shortages and higher interest rates.”
Continued Archuleta in a statement: “Customers are still undertaking larger projects but are mostly paying cash rather than financing them.”
A particular area of industry strength: what is known as the aging-in-place segment seeing Baby Boomers embracing bathroom projects like curb-less showers and grab bars.
The remodeling industry in general has experienced a bit of a wild ride in recent years, with the market index measuring a somewhat dormant 47 in the first quarter of 2020, before exploding to the mid and upper-80s during the Covid pandemic when millions of Americans were staying home and spearheading remodeling projects.
The index peaked at 87 during the final two quarters of 2021, before settling into the mid-70s range last summer.
The future indicators index has proven equally erratic, jumping from 37 in early 2020 to 83 in the summer of 2021. Last year’s numbers in this category ranged from 62 to 78.
By Garry Boulard
