Remodeling Market Index: Increasing Aging-in-Place Consumer Awareness Creates Growth Opportunities

An aging housing stock, record levels of home equity and favorable demographics will create positive growth prospects for the remodeling sector in 2025, according to industry experts at a panel hosted by the National Association of Home Builders during the International Builders’ Show in Las Vegas, Nevada.

The outlook bodes well for the remodeling sector. Consumer inflation remains a concern as shelter costs continue to be sticky despite tightening measures by the Federal Reserve. And while lower mortgage rates are potentially on the horizon, the process will be bumpy, as long-term interest rates could remain flat or even increase with larger fiscal deficits. These ongoing housing affordability challenges signal that demand for remodeling projects will remain solid in 2025.

The NAHB/Westlake Royal Remodeling Market Index, a quarterly survey of NAHB remodeler members that provides insight for the remodeling industry, continues to exhibit positive sentiment, especially when compared to other housing sectors.

The RMI survey also showed 98% of remodelers cited that most or some of their consumers are familiar with the aging-in-place concept. That share was 75% in the fourth quarter of 2004, indicating a significant increase in awareness among consumers over the last two decades and thus creating additional opportunities for growth in the market.

Lynch noted that while the industry has seen gradual improvements in the availability of labor and materials over the past few years, both remain ongoing challenges for remodelers. According to RMI survey results, the top five fields that remodelers reported labor shortages in include: carpenters-finished, carpenters-rough, framing crews, bricklayers/masons and concrete workers.

Remodelers report the products most difficult to get are appliances, windows and doors, HVAC equipment, plumbing fixtures and fittings and cabinets.