Tag Archive for ‘remodelers’

Confidence in Remodeling is Strong Despite COVID-19

The National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) posted a reading of 79 in the fourth quarter of 2020. The reading indicates remodelers’ confidence in their markets, for projects of all sizes, despite the ongoing negative impacts of the coronavirus pandemic (Table 1). The RMI is based on a survey asking remodelers to rate five subcomponents of… Read More ›

77% of Remodelers Report A Framing Lumber Shortage

With the recent increases in the price of many residential construction materials, and in particular softwood lumber, NAHB wanted to get a better understanding of how these price increases are impacting remodelers. In the Q3 2020 Remodeling Market Index (RMI), remodelers were asked to report on material shortages, if any, as well as material price changes over the last six… Read More ›

Remodeling Industry Confidence Surges in Third Quarter

The National Association of Home Builders’ Remodeling Market Index (RMI) posted a reading of 82 in the third quarter, indicating remodelers’ strong confidence in their markets, for projects of all sizes (Table 1). The strong RMI reading is a reflection of more Americans investing in home remodeling projects as they adapt to the impacts of the coronavirus pandemic. The RMI… Read More ›

Remodeling Market Shows Optimism despite COVID-19

In the second quarter of 2020, The NAHB Remodeling Market Index (RMI) posted a reading of 73, which indicates more remodelers view conditions as good than poor (Table 1). This is the second quarter with a new RMI, redesigned to ease respondent burden and improve its ability to interpret and track industry trends. See Table 1 for results here. The… Read More ›

Remodelers’ Net Profit Margins Are Flat

The residential remodeling industry, just like any other private industry in the American economy, operates on the basis of competition and profits. Companies enter, stay or exit the industry of their own volition, driven by consumer demand for their services and the expectation of a rate of return commensurate with the risk taken. Because reliable information is critical to make… Read More ›

Remodeling Confidence Increases Despite Rising Costs

The Remodeling Market Index (RMI) rose one point to 58 in the second quarter of 2018, according to the National Association of Home Builders (NAHB). A RMI reading above 50 indicates that more remodelers report market activity is higher than report it is lower compared to the prior quarter. The RMI has been above 50 for 21 consecutive quarters (Figure… Read More ›

HELOC Win Retains $760 Million in Remodeling Incentives

Ever since the inception of the U.S. income tax in 1913, home owners have been able to deduct interest paid on home equity loans (HELOCs). The Omnibus Budget Reconciliation Act of 1987 limited the mortgage interest and HELOC deductions to interest paid on $1,000,000 and $100,000 of debt, respectively. Then came the Tax Cuts and Jobs Act of 2017 (TCJA)…. Read More ›

How Much Do Residential Remodelers Earn in a Year?

Findings from the recently released Remodelers’ Cost of Doing Business Study: 2017 Edition show that the net profit margin for the typical residential remodeler increased to 5.3% in 2015, up from 3.0% in 2011. Combining all sources, remodelers reported an average $1.8 million in revenue for 2015, of which $1.3 million (71.1%) went to pay for cost of sales items… Read More ›