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.