CHICAGO–(BUSINESS WIRE)–Positive sentiment among residential contractors across the U.S. pushed to even higher levels in Q2 2021, according to the latest U.S. Remodeler Index (USRI), which surveys design and construction pros in three industry segments: design-build, full-service as well as specialty home improvement. It registered a confidence level of 75.3, up from a very strong 72.7 in Q1.
The USRI, a collaboration between Qualified Remodeler and John Burns Real Estate Consulting, is a diffusion index where readings over 50 are positive. Last fall, the reading was 57.1. Confidence has soared since then.
“The Q2 USRI demonstrates the compelling shift that we are seeing in remodeling spending after COVID, namely growth in deferred big-project remodels,” said John Burns analyst Todd Tomalak. “We continue to worry about labor availability, but the favorable mix-shift in project size is encouraging. Overall, we expect big-project remodel spending to continue to grow while DIY and small project slows.”
There are four takeaways from the latest reading, said Tomalak.
- Larger-scale remodels are becoming the norm. Sixty-two percent of remodelers say their average project size continues to increase. In addition to larger projects, 71 percent of remodelers who reported a shift in average price-point say clients are spending more, noting that consumers increasingly understand the long-term value of high-quality products and materials.