Industry Increase

Spending by homeowners on home improvement projects increased modestly to $102.5 billion for the four quarters ending in the first quarter of 2001, according the Harvard Joint Center for Housing Studies’ Remodeling Activity Indicator. With this level of activity, the growth rate in spending declined to just less than 1 percent during the first quarter of 2001.

“Spending by homeowners has stabilized in recent quarters at $102 billion to $103 billion per year,” says Nicolas P. Retsinas, director of the Joint Center. “Given the trends in the components of our Remodeling Activity Indicator, as well as trends in the broader economy, it is likely that spending will remain in this range for the next few quarters.”