Home Builders and Remodelers Optimistic Heading Into Winter
Remodeling and home building are in high demand, and industry pros anticipate no letup over the next few months.
Homebuilders and remodelers are feeling bullish on the construction market after continued growth throughout the summer and early fall, according to recent data from the National Association of Home Builder’s Housing Market Index and Remodeling Market Index.
The surveys reflect builder confidence in their respective markets and show highly positive scores of 85 and 82 (out of 100), respectively.
October’s HMI score of 85 was an all-time high, breaking the record set in September. Those two months represent the only times in the 35-year history of the HMI the score exceeded 80.
“Traffic remains high and record-low interest rates are keeping demand strong as the concept of ‘home’ has taken on renewed importance for work, study and other purposes in this COVID-era,” says NAHB Chairman Chuck Fowke. “However, it is becoming increasingly challenging to build affordable homes as shortages of lots, labor, lumber and other key building materials are lengthening construction times.”
Despite certain factors that may be limiting its true potential for growth, reports indicate that single-family homebuilding has surged in recent months, increasing 8.5 percent from September to October.
New homes are not the construction industry’s only booming business, though. The Remodeling Market Index’s remarkably high score reflected a similar confidence amongst remodelers. Most expecting to see high demand for their services over the coming months.
“With refinancing activity surging, home owners are investing in their homes, which is sustaining strong demand for remodeling,” says Tom Ashley, the NAHB Remodelers chair. “As a result of the rapid changes for work and the economy after the virus-induced recession, homes are serving multiple roles such as school, office and gym. This has directly increased the demand for improvements.”