Index Shows 17 Straight Months of Growth for Remodeling ActivityMay 17th, 2011 | Category: Industry News
BuildFax unveiled its BuildFax Remodeling Index (BFRI) for March 2011 last week and it showed that the residential remodeling industry continued to strengthen in March. The report reveals continued year-over-year gains, with data demonstrating that more people are actively remodeling their homes across the United States, even while the economy continues to struggle and the real-estate industry continues to be challenged.
The latest BFRI index, detailing remodeling activity from March 2011, indicates that residential remodeling activity registered the seventeenth-straight month of year-over-year gains, demonstrating that many Americans are continuing to remodel their current homes, rather than purchasing new homes.
The March 2011 index shows that all regions except the Midwest posted year-over-year and month-over-month gains. The West posted the largest gains, up 18.5 points (22 percent) year-over-year and up 5.4 points (6 percent) month-over-month. The Midwest saw significant drops, down 15.3 points (20 percent) year-over-year and 3.3 points (5 percent) month-over-month, perhaps due to a colder winter. The Northeast gained 2.7 points (4 percent) year-over-year and 4.5 points (8 percent) month-over-month, and the South improved 7.8 points (10 percent) year-over-year and 7 points (9 percent) month-over-month.
“The winter of 2010-2011 was one of the worst on record. The economy is continuing to struggle and gas prices have soared, however, consumers in March still continued spending on renovations and home improvements as they drove the remodeling industry to yet another month of solid gains compared to a year ago,” says Joe Emison, vice president of research and development at BuildFax. “Significant improvements in the West continue to drive activity nationally to the best year in remodeling since 2006. Even though the Midwest saw a drop this winter, early data shows that remodeling in all regions will continue to prove out the economic recovery in 2011.”