NAHB Foresees Measured Growth in Residential RemodelingFebruary 13th, 2012 | Category: Industry News
The residential remodeling market will continue to experience measured growth in 2012 after the Remodeling Market Index (RMI) rose to a five year-high at the end of 2011, according to panelists at a press conference that took place during the National Association of Home Builders (NAHB) International Builders’ Show (IBS) in Orlando last week. While the overall housing market conditions continue to create a drag on remodeling growth, the growing trend among home owners to remain in their homes and remodel has provided a boost to the remodeling market, according to the announcement.
“Remodelers are poised to continue our industry’s gradual improvement as we start 2012,” said 2012 NAHB Remodelers Chairman George “Geep” Moore, Jr., CGR, CAPS, GMR, a remodeler from Elm Grove, La. “It is our hope that home owners who want to remodel this year face less constrictions from lack of financing, fear of lost equity and challenging appraisals.”
The strongest sectors of the remodeling market at present are aging-in-place retrofits, energy efficiency upgrades, and reinvesting in distressed properties, according to the announcement. The leading indicator for remodeling points to continued market volatility, but stronger growth in the second half of 2012.
According to the announcement, in the fourth quarter of 2011, the RMI component measuring current market conditions rose to 48.4 from 43.0 in the previous quarter. The RMI component measuring future indicators of remodeling business was also positive, increasing to 44.8 from 40.4 in the previous quarter.