In the first quarter of 2013, remodeler confidence fell six points to 49 on the Remodeling Market Index (RMI) calculated by the National Association of Home Builders (NAHB). An RMI below 50 indicates that more remodelers report market activity is lower (compared with the prior quarter) than report it is higher.
The NAHB cites rising costs of construction materials and limited labor for remodelers' faltering confidence.
"Although this quarter's RMI indicates a pause in the improvement that the remodeling market had been showing, it is nevertheless the third highest reading for the RMI since the first quarter of 2006," said NAHB Chief Economist David Crowe in a statement. "Like the rest of the home building industry, remodelers are starting to feel squeezed by higher costs and limited availability of labor and materials, which is unusual at such an early stage of a housing recovery. However, the downturn was so deep and extended that this time it may take a while to re-establish the supply chains."
NAHB noted another trend: "Repairs and minor additions are currently the strongest categories of business for remodelers as home owners continue to invest in deferred maintenance and room-by-room remodeling," said NAHB Remodelers Chairman Bill Shaw in a statement.
