WASHINGTON—Concern about the rising costs of construction materials and labor contributed to remodelers’ confidence in the market falling six points in the first quarter of 2013, according to the Remodeling Market Index (RMI). The National Association of Home Builders (NAHB) also reported decreases in the future market indicators, decrease from 56 in the previous quarter to 48, and current market conditions, which fell from 54 in the previous quarter to 50. A bright spot of the RMI is that all categories of remodeling in owner-occupied homes scored 51 or better.
Specific region breakdown of the RMI was 47 in the Northeast, 47 in the Midwest, 51 in the South and 52 in the West.
“Remodelers remain optimistic about the outlook for growth in the remodeling market this year, but the rising cost of doing business makes it difficult to deliver the prices that many of our customers expect,” said 2013 NAHB Remodelers Chairman Bill Shaw, GMR, GMB, CGP, a remodeler from Houston. “Repairs and minor additions are currently the strongest categories of business for remodelers as home owners continue to invest in deferred maintenance and room-by-room remodeling.”
More information about the first quarter of 2013 RMI and the NAHB can be found here.