Builders Club Rewards Cleveland May 2022

www.buildersclub.com | Builders Club Rewards | Page 21 News Remodeling Market Remains Stable Year-over-Year The National Association of Home Builders (NAHB) released its NAHB/Westlake Royal Remodeling Mar- ket Index (RMI) for the fi rst quarter, posting a reading of 86, which remained unchanged compared to the fi rst quarter of 2021. The fi nding is a signal of residential remodelers’ con fi dence in their markets, for projects of all sizes. “Business remains strong for most remodelers at the beginning of 2022,” said NAHB Remodelers Chair Kurt Clason, a remodeler from Ossipee, N.H. “How- ever, a few are starting to report that customers are re- luctant to move forward on projects due to the delays and higher costs caused by supply chain problems.” The NAHB/Westlake Royal Remodeling Market Index RMI survey asks remodelers to rate fi ve components of the remodeling market as “good,&rdquo “fair&rdquo or “poor.” Each question is measured on a scale from 0 to 100, where an index number above 50 indicates that a higher share view conditions as good than poor. The Current Conditions Index is an average of three components: the current market for large remodeling projects, moderately-sized projects and small projects. The Future Indicators Index is an average of two com- ponents: 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. Any number over 50 indicates that more remod- elers view remodeling market conditions as good than poor. The Current Conditions Index averaged 89, remain- ing unchanged compared to the fi rst quarter of 2021. The component measuring large remodeling projects ($50,000 or more) rose four points to 89, while the component measuring moderately-sized remodeling projects (at least $20,000 but less than $50,000) fell one point to 89, and the component measuring small remodeling projects (under $20,000) declined by two points to 90. The Future Indicators Index edged down two points to 82 compared to the fi rst quarter of 2021. The com- ponent measuring the current rate at which leads and inquiries are coming in fell six points to 80, while the component measuring the backlog of remodeling jobs increased two points to 84. “An overall RMI of 86 indicates positive remodeler sentiment and is consistent with NAHB’s projection of moderate growth in the remodeling market for 2022,” said NAHB Chief Economist Robert Dietz. “Neverthe- less, rising interest rates and the high cost of materials are signi fi cant headwinds to the remodeling industry and the housing industry at large.” 48 73 82 79 86 87 87 83 86 0 10 20 30 40 50 60 70 80 90 100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 Figure 1: NAHB/Westlake Royal Remodeling Market Index (RMI) OVERALL RMI (Not Seasonally Adjusted) 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 NAHB/Westlake Royal RMI 48 73 82 79 86 87 87 83 86 Current Conditions Index 58 77 86 85 89 91 90 89 89 The current market for large remodeling projects ($50,000 or more) in the area where you operate. 53 70 80 78 85 90 86 85 89 The current market for moderately-sized remodeling projects (at least $20,000 but less than $50,000) in the area where you operate. 59 78 86 88 90 91 91 90 89 The current market for small remodeling projects (under $20,000) in the area where you operate. 62 83 90 89 92 92 91 91 90 Future Indicators Index 39 70 77 72 84 83 84 77 82 The current rate at which your leads and inquiries are coming in. 30 72 78 71 86 81 83 74 80 Your current backlog of remodeling projects. 47 67 77 73 82 86 85 80 84 NAHB/Westlake Royal Remodeling Market Index (RMI) National Index, Components & Subcomponents (Not Seasonally Adjusted) 2020 2021