Remodeling activity in the United States held up well during the third quarter of 2007, according to the National Association of Home Builder’s (NAHB) Remodeling Market Index (RMI). The current market conditions indicator increased slightly to 46.2 from 44.8 in the second quarter. And the future expectations measure comes in at 43.3, down just slightly from 44.6. Comparisons to third quarter 2006 (current market conditions: 47.8; future expectations: 45.4) show only a slight decline.
“Buoyed by continuing strong demand for minor additions and alterations, the remodeling market is expected to end the year in pretty good shape,” said NAHB Remodelers Chairman Mike Nagel, CGR, CAPS, a remodeler from Chicago. “Though down a bit from the previous quarter, the remodeling market is not experiencing the dip in production and sales being seen by the new home building sector of the industry.”
Nationally, minor additions and alterations increased significantly during the third quarter to 47.07 (from 43.27), while major additions and alterations remained stable at 46.89 (from 46.36). Regionally, minor additions and alterations increased significantly in the northeast to 56.68 (from 50.43) and Midwest to 57.44 (from 45.06).
The amount of work committed for the next three months rose slightly to 36.12 (from 35.91) and the backlog of remodeling jobs decreased to 44.93 (from 47.33). Additionally, owner-occupied remodeling increased to 49.1 (from 47.1), while renter-occupied remodeling declined to 38.7 (from 40.2).
The RMI “special questions” section this quarter focused on outdoor remodeling jobs, which is the first time questions have been asked on the topic. Fifty-two percent of respondents reported the most common type of outdoor remodeling job completed by the company was adding a deck, followed by porch (35%), patio (25%), front porch (25%), decking/patio covers/enclosures (22%), outdoor lighting (13%), and outdoor kitchen (13%).