Remodeling Shows Big Gains in May

July 18, 2011  by in UnCategorized   

By Home Furnishings Business in economic news on July 19, 2011

The Buildfax Remodeling Index showed May as the month with the highest level of remodeling activity since the Index was introduced in 2004.

The report released Monday showed continued month-over-month gains for every region of the country, with data demonstrating that consumers are continuing to invest in remodeling, even as home prices continue to dip and unemployment continues to rise. The latest BFRI also showed that residential remodeling activity registered the 19th straight month of year-over-year gains, demonstrating that many Americans are continuing to remodel their current homes, rather than purchasing new homes.

The May 2011 index rose 22 percent year-over-year, and for the 19th straight month, to 124.3, the highest number ever in the index to date.

"Through the first five months of 2011 we have seen impressive gains within the remodeling index and May has continued that trend with a record setting month," said Joe Emison, Vice President of Research and Development at BuildFax, Austin, Texas. "Even with the continued struggles in the economy, the remodeling industry has been a bright spot, as consumers look to make upgrades to their current homes, rather than purchasing a new residence. Based on the trends from the first months of this year, we expect to continue seeing strong gains from coast to coast."

All regions were up month-over-month, with the Northeast up 9.8 points (12 percent), the South up 7.3 points (7 percent), the Midwest up 16.3 points (18 percent), and the West up 8.7 points (7 percent). Even though the Midwest was up month-over-month, it continues to lag the other regions (as it has for the past three months) in year-over-year performance, down 10.6 points (11 percent) year-over-year. All other regions were up year-over-year, with the Northeast up 7.2 points (9 percent), the South up 9.5 points (10 percent), and the West up 20.7 points (21 percent).