WASHINGTON, D.C. (PRWEB)
November 14, 2017
Metrostudy, a Hanley Wood company, announced today the release of its third quarter 2017 Residential Remodeling Index (RRI), detailing activity in the remodeling and replacement industry.
The RRI, measuring overall remodeling activity in the nation, improved to a new high of 110.0 in third quarter 2017. The latest RRI gained 4.8 percent from one year earlier and 1.2 percent from the previous quarter. Third quarter 2017 marks twenty-two consecutive quarters of year-over-year gains in the index since 2011, the bottom of remodeling activity nationwide.
Third quarter’s 4.8 percent annual gain was the strongest rate of growth since a 5.5 percent annual increase was observed in first quarter 2014, demonstrating how a strengthening economy in 2017 is fueling home renovations. Hurricanes Harvey and Irma are expected to cause noticeable bumps in remodeling activity through 2018 as reconstruction and repairs get underway in impacted areas. The RRI is now expected to average year-over-year gains of 4.7 percent throughout 2018, up from expectations of 3.6 percent in Metrostudy’s previous release.
“Hurricanes Harvey and Irma hampered national job growth in September, but payrolls bounced back in October with 261,000 new jobs, while the unemployment rate fell to 4.1 percent – the , its lowest level since Yyear 2000. There are very little signs of the labor market slowing, and more signs the economy as a whole is gaining strength,” said Mark Boud, Chief Economist at Metrostudy. “GDP rose three percent in third quarter 2017, the second-straight quarter of solid growth. Stronger global growth and a weaker dollar has driven demand for American goods and services in recent months, boosting the manufacturing sector and driving exports. There is growing sentiment that the U.S. economy is finally firing on multiple cylinders, and we expect the remodeling market to benefit over the near term as consumers become increasingly confident. We also expect project activity to increase noticeably over the next year in the hurricane-hit areas of Texas and Florida as recovery begins.”
Metrostudy produces the RRI to provide the industry visibility into local market remodeling activity, forecasted future activity, and potential demand. According to the…