Economic downturns have taken their toll on more than just new homes and resales. The latest report from the NAHB indicates that residential remodeling activity "remained sluggish during the second quarter of 2008."

"As in previous economic downturns, remodeling activity is proving to be cyclical rather than countercyclical, although the degree of decline pales in comparison to the setbacks registered in the new-home market, said NAHB Chief Economist David Seiders. "We expect remodeling to remain generally flat in 2009 followed by strong growth due to home maintenance needs."

The largest area of decline was seen in major additions. Minor additions and alterations actually saw a slight increase in activity.

"While markets remain pretty active, most remodelers are taking on a greater number of smaller jobs to maintain their businesses," said NAHB Remodelers Chairman Lonny Rutherford, CGR, CAPS, CGP, a remodeler from Farmington, NM.

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Published: August 13, 2008

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