The National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) posted a reading of 58 in the first quarter of 2017, up five points from the previous quarter. This reading is the highest since the fourth quarter of 2015 (Figure 1).
A RMI above 50 indicates that more remodelers report market activity is higher (compared to the prior quarter) than report it is lower. The overall RMI is an average of two sub-indices: one that measures current market activity and another measuring future remodeling activity.
In the first quarter of 2017, the current market sub-index increased to 58 (Figure 2). Among its components, major additions and alterations rose 4 points to 57, minor additions and alterations climbed 7 points to 59, and maintenance and repair increased six points to 60.
The sub-index measuring future market activity also reached 58 in the first quarter of 2017 (Figure 3). Among its components, calls for bids rose significantly from 49 to 59, amount of work committed grew from 50 to 58, the backlog of remodeling jobs gained seven points from 55 to 62, while appointments for proposals remained unchanged at 54.