Remodeling Index (RRI). The index reached a new high of 117.5 in the first quarter, a 0.7% increase from the fourth quarter of 2018.
The RRI value means economic conditions known to influence remodeling activity are 17.5% better than the old peak in early 2007, just before the Great Recession. The positive growth in the RRI marks the 28th consecutive quarter of YOY growth for the index.
The RRI is based on a statistical model that takes into account data such as household-level remodeling permits, employment statistics, and a market’s economic health. It uses that model to predict the number and dollar volume of home improvement and replacement projects worth at least $1,000 in 381 metropolitan statistical areas and nationwide.
While the latest RRI forecast projects continued growth in the RRI over the next several years, growth in 2019, 2020, and 2021 is expected. The index is expected to average YOY gains of 3.2% in 2019, 2.3% in 2020, and 3.2% in 2021, according to Metrostudy.
Metrostudy projects the number of remodeling projects worth $1,000 or more will rise to 12.9 million, a 3.2% increase YOY. Big-ticket exterior projects and basement projects are expected to have the biggest increases from 2019, The inflation-adjusted value of big-ticket remodeling projects in 2019 is predicted to increase 4.8% to $203.7 billion.
According to Metrostudy, growth is expected in 2019 and these markets will experience an average growth rate of 3.1%.