| WASHINGTON -- Remodeling activity slowed in the second quarter of 2006, according to the National Association of Home Builders' (NAHB) Remodeling Market Index (RMI). The current market conditions index decreased from 48.1 to 45.6 and future expectations moved from 48.9 to 43.5.
Any number over 50 indicates that the majority of remodelers view market conditions as improving.
The RMI component for owner-occupied units moved from 53.8 to 49.0 in the second quarter, while the component for renter-occupied units increased from 36.7 to 39.0 during the same period. In the future expectations index, the component for owner-occupied units moved from 53.2 to 47.2 and the renter-occupied component decreased from 30.4 to 28.8. Rental-property remodeling accounts for a third of all remodeling expenditures.
"Remodeling is less volatile than new home construction partly because nearly half of all expenditures represent non-discretionary maintenance and repair projects," said NAHB Chief Economist Dave Seiders. "The average age of the housing stock is 32 years and rising - well past the time when major home systems need replacement. Supported by more than $11 trillion in homeowner equity, the fundamentals of the remodeling market will remain strong for the foreseeable future."
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