Survey Reveals Top Remodeling Projects

Bathroom remodeling edged out kitchens as the most popular type of remodeling project, according to a new survey by the National Association of Home Builders.

Through 2009 kitchens dominated home remodeling projects as the most common, that trend switched in 2010 and then again in 2014 as bathroom remodeling takes the throne.

Bathroom remodeling was cited as the most common remodeling project in 2014 by 78 percent of remodelers, just barely edging out kitchen remodels at 77 percent, NAHB reports. Other types of remodeling projects trail kitchens and baths by a wide margin.

Source: “Remodeling Jobs – Baths Edge Kitchens Again for Top Spot,” National Association of Home Builders Eye on Housing blog (May 1, 2015)

More Home Owners ‘Spruce Up Their Homes’

The National Association of Home Builders’ Remodeling Market Index shows remodeling activity at its highest reading since the first quarter of 2004. The index was at 57 in the fourth quarter of 2013. Any reading above 50 indicates more remodelers report market activity is higher than those who report lower. The index’s future market conditions rose to 58, the highest reading since recording of that measure began in 2005.

“Steady existing home sales, historically favorable interest rates for home buyers and rising home equity have combined to release some of the pent-up demand for home remodeling from the past few years,” says NAHB Chief Economist David Crowe. “This quarter’s RMI reading shows that the slow but steady improvement in the remodeling market will continue in 2014.”

The National Association of the Remodeling Industry’s fourth quarter Remodeling Business Pulse data also showed an uptick in remodeling activity. The biggest reasons cited for an increase in home remodeling were home owners needing to do projects they had postponed and improving home prices.

“The fourth quarter of this year was very strong for many remodelers, as reflected in the Remodeling Business Pulse Survey,” says Tom O’Grady, chairman of NARI’s Strategic Planning & Research Committee. “Average sale prices continue to rise, and consumers are more comfortable spending money on projects that will increase the value of their homes.”

—REALTOR® Magazine Daily News

More Home Owners are “Calling Remodelers”

As home prices rise, remodelers are feeling optimistic about the home improvement market, the National Association of Home Builders reports.

The second quarter Remodeling Market Index (RMI) rose six points to 55. An RMI above 50 indicates that more remodelers are reporting higher market activity, per NAHB.

“Remodelers’ positive sentiment is directly related to increased demand for their services,” said NAHB Chief Economist David Crowe. “Rising home prices are making remodeling jobs possible for more home owners while existing home sales provide additional momentum as home owners prepare their homes for market.”

The future market indicators component of the RMI increased to 56 from the previous quarter level of 48. Current market conditions rose from 50 in the previous quarter to 54. All of the indicators of future activity — such as calls for bids, work committed for three months, backlog, and appointments — were over 50 for the first time in eight years.

“The RMI future market results are especially promising,” said NAHB Remodelers Chairman Bill Shaw, a remodeler from Houston. “Not only do remodelers have projects booked for the next few months, but they also have more work coming in the door.”

For more information about remodeling, visit www.nahb.org/remodel.

Source: National Association of Home Builders