The NAHB/Westlake Royal Remodeling Market Index (RMI) for the second quarter of 2024 posted a reading of 65, down one point compared to the previous quarter.
The RMI remains solidly in positive territory, and NAHB continues to project that remodeling activity has stabilized at a healthy level in 2024. Although some remodelers are reporting a slowdown, most continue to see solid demand for remodeling projects. In some markets, elevated interest rates have caused some customers to purchase improvement projects with cash rather than loans. However, this option is only available for wealthier home owners.
The RMI is based on a survey that asks remodelers to rate various aspects of the residential remodeling market “good”, “fair” or “poor.” Responses from each question are converted to an index that lies on a scale from 0 to 100. An index number above 50 indicates a higher proportion of respondents view conditions as good rather than poor.
Current Conditions
The Remodeling Market Index (RMI) is an average of two major component indices: the Current Conditions Index and the Future Indicators Index.
The Current Conditions Index is an average of three subcomponents: the current market for large remodeling projects ($50,000 or more), moderately sized projects ($20,000 to $49,999), and small projects (under $20,000). In the second quarter of 2024, the Current Conditions Index averaged 73, down one point from the previous quarter. Quarter-over-quarter, the components measuring large remodeling projects ($50,000 or more) and moderate remodeling projects (at least $20,000 but less than $50,000) remained even at 70 and 74, respectively, while the component measuring small-sized remodeling projects (under $20,000) fell two points to 75.
Future Indicators
The Future Indicators Index is an average of two subcomponents: the current rate at which leads and inquiries are coming in and the current backlog of remodeling projects. In the second quarter of 2024, the Future Indicators Index was 58, which was down one point from the previous quarter. Quarter-over-quarter, the component measuring the current rate at which leads and inquiries are coming in decreased two points to 55 and the component measuring the backlog of remodeling jobs dropped one point to 60.
For the full set of RMI tables, including regional indices and a complete history for each RMI component, please visit NAHB’s RMI web page.
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