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PRESS RELEASE CONTACT: Elizabeth England: (617) 495-7640 January
16, 2003
*For previous RAI press releases, please visit the list of press releases in our Media section* Remodeling
Holds Steady
Even with the recent weakness in job growth and consumer confidence, homeowners are still investing in remodeling. While interest rates remain low, financing costs for remodeling projects remain affordable. The continued growth in remodeling, according to the Remodeling Activity Indicator (RAI) devised by Harvard's Joint Center for Housing Studies, reflects people's interest in making their homes fit their dreams. "Homeowners are continuing to reinvest in their homes. Last quarter's modest growth has been sustained as homeowners take advantage of interest rates near historical lows" remarked Nicolas P. Retsinas the director of the Joint Center. "In spite of problems within the broader economy" explained Kermit Baker, director of the Remodeling Future Program of the Joint Center. "Indicators more directly related to remodeling: home sales and retail sales of building materials, are running well above last years levels." As an indicator, the RAI is an annual figure released quarterly that is derived from four components: manufacturers' shipments of floor and wall tile products; retail sales at building materials and supply stores; sales of existing one-family homes; and the bank prime loan rate. Prior to the RAI, measurement of these homeowner expenditures was limited to the Commerce Department's quarterly Expenditures for Residential Improvements and Repairs.
The RAI is regularly released by Harvard's Joint Center for Housing Studies during the third week after each quarter's closing-two quarters before the U.S. Commerce Department's data on residential improvements and repairs is available-in order to provide industry with an accurate and timely reading of national remodeling activity levels. The next release date is April 21, 2003. Research to produce the RAI grew out of the Remodeling Futures Program, a JCHS study supported by the Joint Center's Policy Advisory Board and other industry sponsors. The working paper that explains the development of the RAI, "Development of an Indicator for the Homeowner Improvement and Repairs Market" (W98-6), and the Remodeling Futures report, Remodeling Homes for Changing Households, are available electronically at the Joint Center's website at www.jchs.harvard.edu. -END- For
more information about the Joint Center and its programs, |
