US home remodeling activity inched higher during the second quarter, led by smaller home improvement projects, the National Association of Home Builders (NAHB) said in its quarterly report.
The NAHB/Westlake Royal Remodeling Market Index (RMI) rose by 2 points from a year earlier to 61 in the second quarter. The index, measured on a scale of 100, indicates generally bullish sentiment in the sector when readings are above 50.
While remodelers wrestle with economic uncertainty and elevated interest rates, demand for home improvement is proving resilient, NAHB said.
Slower new construction rates mean older houses and homeowner equity are "keeping the remodeling market relatively strong", even as building material costs rise, NAHB economist Robert Dietz said.
The index for small remodeling projects of less than $20,000 rose by 4 points from a year earlier to 74 during the quarter, with projects in excess of $50,000 increasing by 2 points to 64 during the same period.
US polyvinyl chloride (PVC) demand was mostly steady during the second quarter, with infrastructure demand for pipe and PVC used primarily in multifamily builds proving resilient, sources said.
US contract PVC prices, though, have increased by 20pc since the start of the year, largely fueled by supply constraints stemming from US-Iran war. This is making planning more difficult for remodelers already constrained by high borrowing costs.
