Metrostudy Releases Q1 2017 Residential Remodeling Index (RRI)— Remodeling Activity Resilient, Set for Strong Near Term Performance
WASHINGTON, D.C. (May 18, 2017) — Metrostudy, a Hanley Wood company, announced today the release of its first quarter 2017 Residential Remodeling Index (RRI) detailing activity in the remodeling and replacement industry.
The remodeling industry opened 2017 on a strong note with the national RRI Activity Index reaching a new all-time high of 107.3, which represented a solid gain of 4.5 percent from one year earlier. The index has now seen twenty consecutive quarters of year-over-year gains since 2011, which was the bottom of remodeling activity nationwide. The index has posted annual gains above 4.0 percent since the second quarter of 2015 and is forecast to continue doing so through fourth quarter 2017, before some slight moderation is expected.
“The current strength of the remodeling market can be attributed primarily to economics – low mortgage rates, strong existing home sales, the bull stock market run, good job gains, and now more recently, wage gains,” said Mark Boud, Chief Economist at Metrostudy. “Yet, as the economic cycle matures over the next few years, rates increase and full employment translates to less robust job growth over time, demographic trends will play a bigger role in driving demand for remodeling. Baby-boomers will continue retiring and aging in place as they have been, and Millennials will be increasingly maturing in their life stages –jobs, dating, marrying (or not marrying), buying a home, and choosing to remodel that home. And, with housing affordability an issue in many markets across the country, Millennials will be more inclined to purchase older, more-affordable existing homes that will necessitate renovations. Demographics will matter greatly to remodeling over the next few years as the economic cycle matures.”
Metrostudy produces the RRI to provide the industry visibility into local market remodeling activity, forecasted future activity, and potential demand. According to the company’s first quarter report, all 381 Metropolitan Statistical Areas are expected to see year-over-year growth in remodeling and replacement projects in 2017, with average growth of 4.4 percent –this marks the first year since launching the RRI that all 381 MSAs are forecast to see growth.
For more information on accessing the full quarterly report, please email RRI@hanleywood.com.
About the Residential Remodeling Index
The RRI is a quarterly measure of the level of remodeling activity in 381 metropolitan statistical areas (MSA) in the U.S., with the national composite reflecting the national level of activity. “Activity” includes home improvement and replacement projects, but does not include maintenance or projects of less than $1000. The seasonally adjusted index shows the relative level of activity in the geography specified (MSA or national composite) compared to 2007 (the baseline year). A number above 100 indicates a level of remodeling activity higher than the level of activity at the beginning of 2007, which was the peak of remodeling activity in the prior decade.
The index is produced through a statistical model that leverages detailed data on remodeling activity, including household level remodeling permits, and consumer-reported remodeling and replacement projects. Quarterly historical results for the national composite and for each of the 381 Metropolitan Statistical Areas in the U.S. are available back to 2004. In addition, Metrostudy also produces annual estimates of project counts and expenditures as well as forecasts of the quarterly RRI and annual projects and expenditures.
Metrostudy is the leading provider of primary and secondary market information to the housing and residential construction industry. Metrostudy’s actionable business intelligence informs investment decisions that mitigate risk and grow revenue for builders, developers, lenders, suppliers, retailers and manufacturers. It’s the construction industry’s only integrated data intelligence solution supported by the most extensive U.S. geographic coverage. Learn more at Metrostudy.com.
About Hanley Wood
Hanley Wood is the premier company serving the information, media, and marketing needs of the residential, commercial design and construction industry. Utilizing the largest analytics and editorially driven Construction Industry Database, the company provides business intelligence and data-driven services. The company produces award-winning media, both digital and print, high-profile executive events, and strategic marketing solutions. To learn more, visit hanleywood.com.