The National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) rose one point (55) in the second quarter of 2019.

The RMI, which averages current remodeling activity and future indicators, has been consistently above 50 since the second quarter of 2013 indicating the majority of remodelers report market activity is higher compared to the prior quarter.

“The demand for remodeling continues to hold strong throughout the country,” Tim Ellis says, NAHB Remodelers chair and a remodeler from Bel Air, Md. “However, the lack of skilled labor continues to be one of the largest roadblocks in the industry.”

Current market conditions rose two points (55) from the previous quarter. Among its three major components, major additions and alterations increased four points (53), minor additions and alterations (55), and home maintenance and repair (56) both held steady.

The future market indicators gained one point (55) from the previous quarter. Calls for bids stayed the same (54); amount of work committed for the next three months fell two points (52); the backlog of remodeling jobs increased four points (58); and appointments for proposals remained steady (55) for the third quarter in a row.

In spite of remodelers’ confidence NAHB Chief Economist Robert Dietz says that market conditions are not as promising as they used to be.

“The remodeling market has decelerated somewhat due to ongoing supply-side challenges, as well as year-over-year declines in existing home sales,” Dietz says. “However, remodelers’ confidence continues to be positive. Market conditions would be better if not for labor shortages and rising construction costs making it difficult to complete some projects at prices home owners can afford.”

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