Industry News

Real estate remodeling slows in 3rd quarter

Renter-occupied housing feels the pinch

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Growth of remodeling activity slowed moderately in the third quarter of 2005, according to the National Association of Home Builders' Remodeling Market Index. Today's third-quarter results receded from the seasonally adjusted second quarter of 2005, but remained in the positive growth range. "A softening of the overall rental market has led to an acute decline in rental remodeling expenditures," said Remodelors Council Chairman Don Novak, a remodelor from Cedar Rapids, Iowa. "Remodeling activity remains strong for owner-occupied units, driving the continued positive outlook." Owner-occupied housing represents 69 percent of total housing in the U.S. The RMI is derived from a quarterly national survey of more than 500 remodelors and is seasonally adjusted. The current market conditions index dropped one and a half points from 52.4 to 50.9, while the future expectations index moved down from 52.8 to 51.8. Both indexes continue to signal positive growth in remodeling outlays. Regionally, ...