Remodeling market sentiment declined three points to 65 in Q3 2023, according to the latest NAHB/Westlake Royal Remodeling Market Index (RMI) from the National Association of Home Builders (NAHB).
The report found that the Current Conditions Index averaged 72, falling five points compared to the previous quarter. All three components declined in Q3: the component measuring large remodeling projects ($50,000 or more) decreased five points to 67, the component measuring moderate remodeling projects (at least $20,000 but less than $50,000) fell four points to 73, and the component measuring small-sized remodeling projects (under $20,000) decreased by five points to 76.
Additionally, the report found that the Future Indicators Index fell three points to 57 compared to the previous quarter. The component measuring the current rate at which leads and inquiries are coming in dropped three points to 56, and the component measuring the backlog of remodeling jobs decreased by two points to 59.
“While there is still demand for remodeling, we are seeing some customers pull back a bit, especially for larger projects, due to higher prices and increased interest rates,” said NAHB Remodelers Chair Alan Archuleta.
“Although the RMI is down slightly, it remains in positive territory,” added NAHB Chief Economist Robert Dietz. “The remodeling market, less impacted by interest rates, continues to outperform new construction, increasing from 31% of total residential construction in 2002 to 43% in second quarter 2023.”
For the full RMI tables, please visit nahb.org/rmi.
