Posting a reading of 68 for the fourth quarter of 2024, the National Association of Home Builders (NAHB)/Westlake Royal Remodeling Market Index (RMI) is up five points compared to the previous quarter.
Corroborated by NAHB’s recent analysis of home improvement loan applications, remodelers are more optimistic about the market than they were earlier in the year. Leads are coming in post November election as political uncertainty was removed, allowing demand to rise in many parts of the country stronger than usual for the fall season, especially demand for larger projects. The share of remodelers doing whole house remodeling reached a record high of 62%, seen as current conditions index for $50,000-plus projects showed the greatest increase during the quarter.
According to Eye On Housing, The Current Conditions Index is an average of three subcomponents: the current market for large remodeling projects ($50,000 or more), moderately sized projects ($20,000 to $49,999), and small projects (under $20,000). In the fourth quarter of 2024, the Current Conditions Index averaged 75, increasing three points from the previous quarter. All three components remained well above 50 in positive territory: large remodeling projects rose eight points to 75, moderate remodeling projects increased two points to 73, and small remodeling projects inched down one point to 76.
