The National Association of Home Builders’ Remodeling Market Index was at a level of 58 in the first quarter of 2017, a five-point increase compared with the fourth quarter of 2016 and the highest reading since 2015.
An RMI above 50 means more remodelers reported that market activity is higher compared with the prior quarter than lower. The RMI consists of two indicators: current market conditions increased five points to 58, and future market indicators rose six points to 58.
"At 58, the Remodeling Market Index is seeing broad-based improvement with all major components well over 50," said NAHB Chief Economist Robert Dietz in a statement. "However, remodelers will face challenges meeting the demand as the labor shortage continues and costs for materials, such as lumber, are rising."
