The National Association of Home Builders (NAHB) released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the first quarter of 2024, posting a reading of 66, down one point compared to the previous quarter.

The NAHB/Westlake Royal RMI survey asks remodelers to rate five components of the remodeling market as “good,” “fair” or “poor.” Each question is measured on a scale from 0 to 100, where an index number above 50 indicates that a higher share view conditions as good than poor.

The Current Conditions Index is an average of three components: the current market for large remodeling projects, moderately-sized projects and small projects. The Future Indicators Index is an average of two components: the current rate at which leads and inquiries are coming in and the current backlog of remodeling projects. The overall RMI is calculated by averaging the Current Conditions Index and the Future Indicators Index. Any number over 50 indicates that more remodelers view remodeling market conditions as good than poor.

“Demand for remodeling remains solid, especially among customers who don’t need to finance their projects at current interest rates,” said NAHB Remodelers Chair Mike Pressgrove, a remodeler from Topeka, Kan. “Construction costs are still an issue in some places, just as they were toward the end of last year.”

“An RMI at 66 is consistent with NAHB’s forecast for stable remodeling spending in 2024,” said NAHB Chief Economist Robert Dietz. “Rising costs for construction labor and building materials continue to be the major headwinds to faster growth.”

The Current Conditions Index averaged 74, remaining unchanged from the previous quarter. All three components remained well above 50 in positive territory in the first quarter: the component measuring large remodeling projects ($50,000 or more) remained even at 70, the component measuring moderate remodeling projects (at least $20,000 but less than $50,000) dropped one point to 74, and the component measuring small-sized remodeling projects (under $20,000) edged down one point to 77.

The Future Indicators Index averaged 59, remaining unchanged from the previous quarter. The component measuring the current rate at which leads and inquiries are coming in increased one point to 57, and the component measuring the backlog of remodeling jobs dropped one point to 61.

For the full RMI tables, please visit nahb.org/rmi.