Recession takes toll on remodeling activity

Because of the recession experienced during the fourth quarter of 2001, fewer people were remodeling their homes. The research finding comes from Harvard's Joint Center for Housing Studies, which tracks such changes. "While spending has not fallen off precipitously, we are in the midst of a modest downturn," remarked Nicolas P. Retsinas, the director of the Joint Center. "In light of the reality of the recession, homeowners have begun to defer and cancel major housing renovations." The measure is called the Remodeling Activity Indicator. 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.