WASHINGTON, DC — Rising homeowner equity and limited opportunities to move into other homes continues to bolster the home-improvement market and keep remodelers’ sentiments positive, although sentiment “is not quite as positive” as it was the previous quarter, “as some remodelers are reporting that uncertainty about tariffs and the direction of the economy are making customers hesitant to spend on larger projects,” according to a new report from the National Association of Homebuilders.
A five-point decline in the NAHB’s latest Remodeling Market Index (RMI) “likely reflects consumer uncertainty, fueled by rising costs and tariff concerns,” said NAHB Chief Economist Robert Dietz (see related graph above).
“Although almost all the data for the first quarter RMI were collected before the release of specific reciprocal tariffs, the debate and uncertainty over tariffs has had an effect on consumer confidence,” Dietz observed.
Remodelers responding to the latest RMI survey reported that their suppliers have already increased prices by an average of 6.9% since January due to the anticipated effect of tariffs, the Washington, DC-based NAHB reported.