Remodeling activity nationwide recorded its 20th straight quarter of growth during 2017's first three months and looks set to keep rising through 2020, according to Metrostudy's latest Residential Remodeling Index (RRI).
The index hit a new high of 107.3, which means remodeling-friendly conditions are 7.3% better than they were during the previous peak in spring 2007 and are 4.5% ahead of where the index was in 2016's first quarter. And unlike past years, in 2017 all 381 Metropolitan Statistical Areas across the country can expect to see year-over-year growth in remodeling and replacement projects.
Metrostudy extrapolates its RRI from a combination of economic indicators and other factors, such as remodeling permit counts, that together give a portrait of how many replacement and remodeling jobs worth at least $1,000 are occurring in each of the 381 MSAs. The national RRI is a composite of those local market reports.
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,” Mark Boud, Metrostudy's chief economist, said in a news release. “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."