For the 14th consecutive quarter the remodeling market is seeing positive year-over-year growth, according to the latest Residential Remodeling Index (RRI) released today by Hanley Wood company Metrostudy.
It was during Q3 2015 that the RRI reached 102.1, a 1.3% increase from the previous quarter and a 5.8% year-over-year increase. This 5.8% increase represents the strongest annual gain since Q4 2013. The RRI also remained over the 100 mark, which it passed in Q2 2015, indicating that the nation's remodeling activity has fully recovered since it bottomed out in late 2011.
The RRI was created, and principally constructed, to measure local market activity. According to the report for this quarter, 340 out of 381 Metropolitan Statistical Areas are expected to see year-over year growth in remodeling and replacement projects in 2015, with an average growth rate of 3.6%.
Chief Metrostudy Economist Brad Hunter said of the latest RRI, "Activity is being driven by existing home sales that surged more than expected in September and stand at their second-highest annual rate since February 2007. Job growth came in lower than expected in August and September, but saw a large rebound in October with some wage growth as well.”
As for the future of the remodeling market, the RRI forecasts year-over-year growth to stay in the 5% range through Q1 2016 and eventually level off to an average of 3.5% through Q4 2017.