May 26, 2006: Remodeling Market Strengthens in First Quarter
WASHINGTON - Remodeling activity grew moderately in the first quarter of 2006, according to the National Association of Home Builders' (NAHB's) Remodeling Market Index (RMI). The current market conditions index increased from 46.6 to 48.1 and future expectations moved from 47.5 to 48.9
The RMI for owner-occupied units grew from 48.9 in the fourth quarter of 2005 to 53.8, while renter-occupied units fell from 40.4 to 36.7 during the same period. In the futures expectation index, owner-occupied units moved from 50.4 to 53.2 and the renter-occupied component decreased from 37.8 to 30.4 for the first quarter of 2006. 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 expanding. Remodeling accounts for 40 percent of all residential construction and improvement spending and almost 2 percent of the U.S. economy, says NAHB.