The National Association of Home Builders (NAHB) released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the second quarter, showing a year-over-year decline of 10 points. The NAHB/Westlake Royal RMI survey asks remodelers to rate five components of the remodeling market as “good,” “fair” or “poor,” measuring each question on a scale from 0 to 100. An index number above 50 indicates that a higher share view conditions as good (rather than poor). With a recent rating coming in at 77, most remodelers across the country remain positive about the market, said NAHB Remodelers chairperson Kurt Clason, though a growing number are starting to experience symptoms of a slowdown, he added. “Some customers are showing a reluctance to go forward with projects due to the higher costs and delays associated with material shortages, as well as higher interest rates,” Clason said.

The Current Conditions Index is an average of the current market for large remodeling projects, moderately-sized projects and small projects, while the Future Indicators Index is an average of the current rate at which leads and inquiries are coming in and the current backlog of remodeling projects. The overall RMI is calculated by averaging the Current Conditions Index and the Future Indicators Index, with any number over 50 indicating that more remodelers view remodeling market conditions as good than poor.

The Current Conditions Index averaged 83, dropping eight points compared to the second quarter of 2021. The Future Indicators Index dropped 11 points to 72, compared to the second quarter of 2021. The component measuring the current rate at which leads and inquiries are coming in fell 13 points to 68 and the component measuring the backlog of remodeling jobs decreased by 10 points to 76.