Industry News

Home remodeling slows in second quarter

Renter-occupied units take top priority, builders group finds

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Real estate remodeling activity slowed in the second quarter of 2006, as the current market conditions index decreased from 48.1 to 45.6 and future expectations fell from 48.9 to 43.5, according to the National Association of Home Builders' Remodeling Market Index (RMI). The RMI measures remodeler perceptions of market demand for current and future residential remodeling projects. Any number over 50 indicates that the majority of remodelers view market conditions as improving. "We expected lower sentiment as the overall housing market slows, and the second-quarter numbers certainly reflect that," said Remodelors Council Chairman Vince Butler. "However, the remodeling market should perform relatively well as the overall housing market slows." The RMI component for owner-occupied units dropped from 53.8 to 49 in the second quarter, while the component for renter-occupied units increased from 36.7 to 39 during the same period. In the future expectations index, the component for owner-o...