NAHB: Remodeling Index Indicates ‘Sustained Confidence’

The National Association of Home Builders' (NAHB) Remodeling Market Index (RMI) was at 58 in the final quarter of 2015, one point above the previous quarter. These results have been consistent for year and a half now, and indicate sustained confidence among remodelers, the NAHB said.

"Remodelers' outlook on the market has been positive for the past three years," said NAHB Remodelers Chair Robert Criner, a remodeler from Newport News, Va. "Most importantly, the confidence has been continuous over this period.”

The RMI was up two points over the previous quarter to 66 in the Northeast, unchanged at 58 in the Midwest, up one point to 57 in the South and up two points to 63 in the West. The RMI's future market conditions index gained a point from the previous quarter to reach 59. The RMI's current market conditions index stood at 56, unchanged from the previous quarter.

"The steady performance of the RMI over the past six quarters is consistent with our projection for continued modest growth in remodeling spending," said NAHB Chief Economist David Crowe in a statement. "Constraints to faster growth include labor shortages and home owners who are having trouble obtaining loans for larger projects."

An RMI above 50 indicates that more remodelers report market activity is higher (compared to the prior quarter) than report it is lower. The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity.