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PRESS RELEASE CONTACT: Elizabeth England: (617) 495-7640 January
13 , 2005
*For previous RAI press releases, please visit the list of press releases in our Media section* In
2004, Homeowner Spending on Home Improvements Up an Estimated 5.7%
Remodeling Activity Indicator for Fourth Quarter 2004 Released CAMBRIDGE, MA – Home improvement spending by homeowners trended up through 2004 and ended the year growing by almost 6% over 2003 levels. According to the Remodeling Activity Indicator (RAI) devised by Harvard’s Joint Center for Housing Studies, homeowners continue to invest in the homes by spending almost $127 billion on remodeling during 2004. The Director of the Joint Center, Nicolas P. Retsinas, remarked, “The economy continues to be a positive factor in the strong remodeling market. The expansion in remodeling spending is yet another indication that the growing payrolls and rising consumer confidence encourages homeowners to spend more on improvements.” Kermit Baker, director of the Remodeling Futures Program of the Joint Center, commenting on this year’s trends, “the year ended up moving in a positive direction. Low Long-term interest rates encouraged home buying and home equity loans that are the key drivers in increased spending on home improvements.”
The RAI is regularly released by the Joint Center’s Remodeling Futures Program 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, 2005. The Joint Center’s Policy Advisory Board and other industry sponsors support the Remodeling Futures Program. The development of the new RAI is detailed in a working paper entitled W04-4: "An Improved Method for Estimating Homeowner Improvement and Repair Activity Through the Remodeling Activity Indicator." 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 Harvard Design School and the Kennedy School of Government. The Director of the Joint Center for Housing Studies since 1998 is Nicolas P. Retsinas. For more information, the website is www.jchs.havard.edu. -END- For
more information about the Joint Center and its programs, |
