The NAHB/Westlake Royal Remodeling Market Index (RMI) for Q2 2024 was 65, down one point from the previous quarter.
The RMI remains in positive territory, and the NAHB continues to forecast that remodeling activity will stabilize at healthy levels in 2024. While some remodelers are reporting a slowdown, most continue to see solid demand for remodeling projects. In some markets, rising interest rates have led some customers to purchase remodeling projects with cash rather than a loan, although this option is only available to wealthier homeowners.
The RMI is based on a survey that asks remodelers to rate various aspects of the home remodeling market as “good,” “fair,” or “poor.” The response to each question is converted into an index on a scale from 0 to 100. An index above 50 indicates a higher percentage of respondents consider the situation to be good than bad.
current situation
The Remodeling Market Index (RMI) is the average of two main constituent indexes: the Current Condition Index and the Future Indicator Index.
The Current Conditions Index is the average of three subcomponents: the current market for large remodeling projects (over $50,000), medium projects ($20,000 to $49,999), and small projects (under $20,000). The Current Conditions Index average for Q2 2024 was 73, down one point from the previous quarter. On a quarter-to-quarter basis, the components measuring large remodeling projects (over $50,000) and medium remodeling projects ($20,000 to less than $50,000) remained steady at 70 and 74, respectively, while the component measuring small remodeling projects (under $20,000) fell two points to 75.
Future Indicators
The Future Metrics Index is the average of two subcomponents: the current velocity of leads and inquiries and the current backlog of home improvement projects. The Future Metrics Index for Q2 2024 was 58, down one point from the previous quarter. On a quarter-to-quarter basis, the component measuring the current velocity of leads and inquiries fell two points to 55, while the component measuring the backlog of home improvement jobs fell one point to 60.
For a complete set of RMI tables, including regional indexes and complete histories of each RMI component, please visit NAHB's RMI webpage.
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