Third-Quarter Remodeling Market Index Posts Solid Gain
WASHINGTON, DC — Demand for remodeling remains strong, and remodelers “are doing quite well as long as they can adequately deal with material and labor shortages,” according to the latest Remodeling Market Index (RMI) compiled by the National Association of Home Builders.
The Washington, DC-based NAHB this week released its NAHB/Royal Building Products Remodeling Market Index (RMI) for the third quarter of 2020, posting a reading of 87, up five points from the third quarter of 2020. The finding “is a signal of residential remodelers’ confidence in their markets, for projects of all sizes,” the NAHB said.
“We are seeing strong demand and continued optimism in the residential remodeling market, despite the fact that supply constraints are severe and widespread,” observed NAHB Chief Economist Robert Dietz, who noted that well over 90% of remodelers in the third-quarter RMI survey reported a shortage of carpenters and 57% reported having slightly raised prices for projects over the last six months, with another 28% indicating a significant increase in price, due in part to higher material costs and ongoing strong demand.
Half of the surveyed remodelers reported “some pricing out of demand” due to higher prices for remodeling projects,” Dietz added.
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Activity Strong Although Project Backlogs Persist, Survey Finds
PALO ALTO, CA — Businesses in the residential construction and remodeling sectors anticipate “strong activity” through the balance of 2021, although many companies report steady increases in backlogs since the beginning of the COVID-19 pandemic, along with wait times of nearly three months before new projects can begin.
That is the key finding of the Q4 2021 Houzz Renovation Barometer, a quarterly gauge that tracks market expectations, project backlogs and recent activity among U.S businesses in the construction and architectural/design services sectors. Results of the survey were released this week by Houzz Inc., the Palo Alto, CA-based online platform for home remodeling and design. The survey was fielded Sept. 28 through Oct. 8th, the company added.
“Confidence prevails across the industry through year-end, despite the ‘Expected Business Activity Indicator’ dipping slightly compared with the very high level posted last quarter,” said Marine Sargsyan, Houzz senior economist.
“We’ve seen some settling of home renovation and design activity following record high performance earlier in the year,” Sargsyan observed. “Yet many businesses are struggling to catch up with heightened demand as they navigate supply chain challenges and labor availability, leading to record-long backlogs.”
More than half of surveyed firms in both the construction and architectural and design services sectors report challenges with product and material shortages and increased costs as of the beginning of Q4, Houzz said.
While only half of businesses anticipated heightened costs for raw materials – such as lumber, copper, steel, plastic, and aluminum – more than two-thirds reported that these materials actually increased in cost over the past quarter. More than nine in 10 construction businesses reported moderate to severe skilled labor shortages, Houzz added.
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Schock to Open First U.S. Factory
MARTINVILLE, VA — SCHOCK GmbH, the global supplier of quartz composite kitchen sinks, will establish its first U.S. manufacturing presence with the construction of a factory in Martinsville, VA, the company announced.
“We couldn’t be more excited to be embarking on this expansion,” said Ralf Boberg, CEO of the Regen, Germany-based company. “SCHOCK’s new facility in Virginia represents a bold, special new step for our company. While our sink products have been available worldwide for years, this is our first manufacturing plant outside of Germany.
“Adding manufacturing in the U.S. will allow us to serve one of our strongest growth markets and meet demand stateside, Boberg added.
The facility will manufacture quartz composite sinks, a category the company pioneered in 1979, SCHOCK officials added.
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