Drop is expected in home improvement spending

The amount of money that homeowners will spend on home improvement is projected to decline by 12 percent in 2009, according to a new study from Harvard University’s Joint Center for Housing Studies.

"The weak housing market and the national economic recession continue to take their toll on remodeling,” Nicolas P. Retsinas (left), director of the Joint Center for Housing Studies, said in a statement. “It looks increasing unlikely that this industry will recover until consumers have more confidence in the housing market.”

The center's press release also included a statement from Kermit Baker, director of the center's Remodeling Futures Program.

“Lower financing costs are beginning to stabilize the downturn in existing home sales, as they also are reducing the cost of financing a home improvement project,” Baker said. “However, they have not been enough to offset rising unemployment and falling consumer confidence and encourage homeowners to undertake major home improvement projects.”
(By Chris Reidy, Globe staff. File photo of Retsinas: Pat Greenhouse, Globe staff)