The National Association of Home Builders' (NAHB) Remodeling Market Index (RMI) continues to rise, posting a reading of 58 in the second quarter of 2018 moving the index up one point from the previous quarter.
The RMI has been consistently above 50—indicating that more remodelers report market activity is higher compared to the prior quarter than report it is lower—since the second quarter of 2013. The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity.
"Remodelers across the country continue to see demand," said Joanne Theunissen, CGP, CGR, NAHB Remodelers Chair and a remodeler from Mt. Pleasant, Mich. "However, the rising cost of materials is impeding the market's ability to be even stronger."
Current market conditions decreased one point from the first quarter of 2018 to 57. Among its three major components, major additions and alterations waned one point to 55, minor additions and alterations decreased two points to 58, and the home maintenance and repair component rose two points to 59.
The future market indicators gained four points from the previous quarter to 59. Calls for bids fell two points to 55, amount of work committed for the next three months increased two points to 56, the backlog of remodeling jobs jumped nine points to 66 and appointments for proposals rose seven points to 61.