Remodeler confidence jumped 36 points compared to the first quarter of 2020. Remodeler confidence, according to the National Association of Home Builders’ Remodeling Market Index, hovered below positive at 48 during this time last year. Today, remodeler confidence has reached 86 points, with anything over 50 considered positive. Remodelers have similar sentiments for current market conditions and future market conditions, but more remodelers are positive about current conditions. The NAHB says these positive increases signal a strong recovery for the remodeling industry, though rising building material costs and limited availability will continue to challenge remodelers.
In the first quarter, the Current Conditions Index was 89, a 31 point increase from the first quarter of 2020. Each of the current conditions subcomponent indices was well over 80: 85 for large, 90 for moderately-sized, and 92 for small remodeling projects. These readings were all up substantially year-over-year, indicating strong demand for remodeling across all types of projects.
The Future Indicator Index is an average of two subcomponents: the current rate at which leads and inquiries are coming in and the current backlog of remodeling projects. In the first quarter, the Future Indicator Index was 84, up 45 points from the first quarter of 2020. The subcomponent indices were 86 for the rate at which leads and inquiries are coming in, and 82 for the backlog of remodeling jobs. Again, both subcomponents were not only over 80, but up substantially year over year.