Harvard Study Says Remodeling Should Rise in 2010

Cambridge, MA, Jan. 22, 2010–Remodeling activity by U.S. homeowners is set to increase again this year, according to Harvard University’s Joint Center for Housing Studies.

Homeowners are projected to spend just under $104 billion at an annualized rate on home improvements in the first quarter, down from $110 billion in the fourth quarter and $118 billion in the first quarter of 2009.

But activity is expected to rise to $107.7 billion in second quarter and $110.9 billion in the third quarter, according to the Leading Indicator of Remodeling Activity calculated by the Remodeling Futures Program at Harvard.

Remodeling work by homeowners peaked in early 2007 at $146.2 billion, about a year after the housing market peaked. Most homeowners perform major work on their houses within three to six months of purchasing an existing home.