How the NAHB’s Remodeling Market Index (RMI) is Measured
- The RMI survey asks remodelers to rate five components of the remodeling market as “good, ” “fair” or “poor.” Each question is measured on a scale from 0 to 100, where an index number above 50 indicates that a higher share view conditions as good than poor.
- The Current Conditions Index is an average of three of these components: the current market for large remodeling projects, moderately-sized projects and small projects.
- The Future Indicators Index is an average of the other two components: the current rate at which leads and inquiries are coming in and the current backlog of remodeling projects.
- The overall RMI is calculated by averaging the Current Conditions Index and the Future Indicator Index.