Company News
04/17/2008 - No Recovery in Remodeling Activity Expected Through 2008
PRESS RELEASE
CONTACT: Elizabeth England: (617) 495-7640
April 17, 2008
--------------------------------------------------No Recovery in Remodeling Activity Expected Through 2008
CAMBRIDGE, MA – Falling consumer confidence and a weakening economy are inhibiting remodeling spending according to Harvard’s Joint Center for Housing Studies. The Leading Indicator for Remodeling Activity (LIRA) reports that homeowner spending for home improvement activity will continue to decline, falling by an annual rate of 4.8% through the end of 2008.
“Spending on home improvements continues to be sluggish, as homeowners respond to falling home prices,” notes Nicolas P. Retsinas, director of the Joint Center for Housing Studies. “The fall-off in pending home sales suggests a long and slow recovery.”
“It looks unlikely that we will see any improvement in the remodeling market until 2009,” remarks Kermit Baker, director of the Remodeling Futures Program of the Joint Center. “Currently, the second half of this year is shaping up to be weaker than the first half.”
The LIRA is a new initiative from the Remodeling Futures Program to estimate future national remodeling activity with a horizon of three quarters. The LIRA replaces the Remodeling Activity Indicator (RAI) previously released by the Joint Center. The LIRA is released quarterly (April, July, October and January) by the Joint Center’s Remodeling Futures Program during the third week after each quarter’s closing. The next release date is July 17, 2008.
The Joint Center’s Policy Advisory Board and other industry sponsors support the Remodeling Futures Program. The development of the LIRA is detailed in a working paper entitled "N07-1: Developing a Leading Indicator for the Remodeling Industry."
Harvard’s Joint Center for Housing Studies is the nation’s leading center for information and research on housing in the United States. Established in 1959, the Joint Center is a collaborative unit affiliated with the Graduate School of Design and the Kennedy School of Government. The Director of the Joint Center for Housing Studies is Nicolas P. Retsinas. For more information, the website is www.jchs.havard.edu.
For more information about the Joint Center and its programs, please call (617) 495-7908.