Slight rise in Q1 remodeler confidence

Remodeler confidence moved ahead by one point in the first quarter, the National Association of Home Builders reported.

The NAHB/Westlake Royal Remodeling Market Index (RMI) for the first quarter, posted a reading of 70, edging up one point compared to the previous quarter.

The Future Indicators Index increased by two points to 64 compared to the previous quarter. The component measuring the current rate at which leads and inquiries are coming in rose two points to 59 and the component measuring the backlog of remodeling jobs increased two points to 69.

“Remodelers are generally optimistic about the home improvement market, although some are noting negative effects of material shortages and higher interest rates,” said NAHB Remodelers Chair Alan Archuleta, a remodeler from Morristown, N.J. “Customers are still undertaking larger projects, but are mostly paying cash rather than financing them.”

The Current Conditions Index averaged 75, dropping two points compared to  the previous quarter. 

Two of the three components declined as well: the component measuring large remodeling projects ($50,000 or more) fell by three points to 71 and the component measuring small remodeling projects (under $20,000) declined by two points to 77. The component measuring moderately-sized remodeling projects (at least $20,000 but less than $50,000) remained unchanged at 78.

“An overall RMI of 70 is consistent with NAHB’s projection that the remodeling market will grow in 2023, but at a slower pace than in 2022,” said NAHB Chief Economist Robert Dietz. “One potential area of growth, given the aging U.S. population, is aging-in-place remodeling. In fact, 63% of remodelers reported in the first quarter doing aging-in-place work, with bathroom projects like grab bars and curb-less showers being particularly common.”