Remodeling Index at Five-Year High, Portland in Top 10
Good News for the Local Remodeling Industry
Remodeling sentiment rose to the highest level in five years, according to the National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) for the fourth quarter of 2011. Released Wednesday, the RMI increased to 46.6 in the fourth quarter from 41.7 in the third quarter. Click here for the NAHB article.
In even better local news, Portland ranked #9 on Remodeling Magazine’s list of the top 100 remodeling markets for 2012. Last year, Portland ranked #17. This view was echoed by leaders within the local Home Builders Association of Metro Portland (HBA) and its Professional Remodelers Organization (PRO).
“As more consumers remain in their homes rather than move in this economy, remodelers benefited from a gradual increase in home improvement activity,” said HBA Officer Steve Heiteen, a local remodeler. “2011 ended on a strong note for the remodeling industry.”
“Consumers seem to be feeling more optimistic that we are beginning to move in an upward direction,” noted HBA PRO Chair Steve Klingerman, also a local remodeler. “While high value projects like kitchens and baths are still leading the way, we’re beginning to see more activity in larger projects.”
An RMI below 50 indicates that more remodelers report market activity is lower (compared to the prior quarter) than report it is higher. The overall RMI averages ratings of current remodeling activity with indicators of future activity.
Current market conditions improved significantly in all four regions over the third quarter of 2011. The RMI reported higher market activity in two important categories: major additions 52.3 (from 45.2) and minor additions 50.1 (from 45.7).
“With several key components above 50, the latest RMI provides reason for guarded optimism going forward,” said NAHB Chief Economist David Crowe. “The residential remodeling market has been improving gradually, mirroring the trend in other segments of the housing market.”
For more information about remodelers in Portland, Oregon, visit www.hbapro.org.
About Home Builders Association of Metropolitan Portland
The Home Builders Association of Metropolitan Portland is the leading voice for the residential building industry, representing almost 1,000 builders, remodelers, trade contractors, suppliers and industry professionals. Since 1942, HBA has worked on behalf of the industry to promote diverse, affordable housing options to area residents.