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PRESS RELEASE CONTACT: Elizabeth England: (617) 495-7640 October 19 , 2006
*For previous RAI press releases, please visit the list of press releases in our Media section* Remodeling Activity Indicator Points to Weakening Home Improvement Market
Remodeling Activity Indicator for Third Quarter 2006 Released CAMBRIDGE, MA – Through the third quarter of 2006, homeowner remodeling spending continued to show signs of easing. According to the Remodeling Activity Indicator (RAI) devised by Harvard’s Joint Center for Housing Studies, homeowners spent an estimated 160.5 billion dollars on home improvements and repairs over the past four quarters, representing only a 1.6% increase compared to the previous four quarters. “The softening housing market, including a reduced volume of home sales, has contributed to slowing expenditures on home improvements by homeowners. As sales continue to fall, remodeling expenditures will continue to slump,” states Nicolas P. Retsinas, director of the Joint Center for Housing Studies. “In recent quarters, the remodeling indicators have been mixed. In the third quarter, however, all of the components of the RAI point to either slower growth or decline. This suggests that the industry has not yet hit bottom, so we should see a further slowdown in the coming quarters,” remarks Kermit Baker, director of the Remodeling Futures Program of the Joint Center.
The RAI 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—generally about two quarters before the U.S. Commerce Department’s data on residential improvements and repairs is available—in order to provide the industry with an accurate and timely reading of national remodeling activity levels. The next release date is January 18, 2007. The Joint Center’s Policy Advisory Board and other industry sponsors support the Remodeling Futures Program. The development of the 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 Graduate School of Design 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, |
