U.S. households saw homeowners and families embark on a wide variety of renovations and remodeling projects over the past year, according to a joint study from the National Association of Realtors and the National Association of the Remodeling Industry.
The National Association of Home Builders (NAHB) released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the first quarter, posting a reading of 70, edging up one point compared to the previous quarter.
National nonresidential construction spending increased 0.4% in February, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $982.2 billion for the month.
The combination of an unsettled economy and high interest rates is causing investors and property owners to take a closer look at their plans for construction projects, according to AIA Chief Economist Kermit Baker.
Builder sentiment has been edging higher in the early part of 2023 as a significant amount of housing demand exists on the sidelines and resale inventory is limited.
Although high construction costs and elevated interest rates continue to hamper housing affordability, builders expressed cautious optimism in March as a lack of existing inventory is shifting demand to the new home market.
Commercial and institutional planning show improvements over the month, according to Sarah Martin, associate director of forecasting for Dodge Construction Network.
Single-family housing starts posted a double-digit percentage gain in December, but production is running well below a rate of 1 million units annually, indicating ongoing weakness in the housing market as high construction costs and elevated interest rates continue to present affordability challenges.