The industry stands to benefit even more over the next year from existing home sales hitting an eight-and-a-half year high at the end of second quarter.
WASHINGTON, D.C. (PRWEB) August 18, 2015
Metrostudy, a Hanley Wood company, announced today the release of its second quarter 2015 Residential Remodeling Index (RRI) detailing activity in the remodeling and replacement industry.
The national RRI Activity Index beat previous expectations by reaching full recovery (a reading of 100.0 or more) in second quarter 2015. The index grew by a strong 5.5 percent year-over-year to reach 100.8 in second quarter. This bested previous calls for recovery of the remodeling and replacement industry to occur in third quarter 2015, and demonstrates the continued firming of demand fundamentals across the country. The RRI has now posted thirteen consecutive quarters of positive year-over-year gains since the industry hit bottom at the end of 2011.
Second quarter’s RRI measure also showed a gain of 1.5 percent over first quarter’s revised reading of 99.3, which now represents fourteen consecutive quarter-to-quarter increases. Additionally, the near term forecast for remodeling activity has strengthened over forecasts made in previous RRI releases.
“We saw a really good uptick in the Residential Remodeling Index in second quarter 2015. Not only did the index beat previous estimates for reaching a point of recovery in the remodeling industry, but growth through the first two quarters of 2015 is much stronger than what was observed in 2014, when the overall housing market had cooled,” says Brad Hunter, Chief Economist at Metrostudy. “A big driver of recent remodeling activity has been solid job gains, but the industry stands to benefit even more over the next year from existing home sales hitting an eight-and-a-half year high at the end of second quarter. Stronger resales benefits remodeling activity, as recent homebuyers typically spend more on home improvements than other homeowners. Continued home price appreciation is also encouraging people to put money into their homes.”
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 second quarter report, 380 out of 381 Metropolitan Statistical Areas are expected to see year-over-year growth in remodeling and replacement projects in 2015, with average growth of 5 percent.
For more information on accessing the full quarterly report, please email RRI(at)hanleywood(dot)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
Contact: Irina Woelfle (203) 570-6770