The Remodeling Market Index rose three points to 56 in the second quarter of 2014, the fifth consecutive quarter with an RMI above 50, according to the National Association of Home Builders.
An RMI above 50 means more remodelers report higher activity compared to the prior quarter.
"With many homeowners on better financial footing, home remodeling has become more popular," said NAHB Remodelers Chair Paul Sullivan in a statement. "The completion of postponed work has helped remodelers in all regions regain confidence in the remodeling market."
Estimates from the U.S. Census Bureau show home improvement market grew 5.6 percent in 2013. The Remodeling Futures Program, a part of Harvard University's Joint Center for Housing Studies, projects annual gains in home improvement spending of 9.9 percent in 2014.
However, growth is predicted to slow to 7.0 percent in the first quarter of 2015.
"With the economy improving slower than expected and home sales struggling to keep up with last year's pace, the recent strong gains in remodeling spending will likely moderate later this year," Chris Herbert, research director at the Joint Center, said in a statement.
