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REMODELING EXPENDITURES UP SHARPLY IN SECOND QUARTER

 REMODELING EXPENDITURES UP SHARPLY IN SECOND QUARTER
 WASHINGTON, Nov. 12 /PRNewswire/ -- Expenditures for improvements


and repairs of residential properties in the second quarter were at a seasonally adjusted annual rate of $124.7 billion, up 35 percent from the previous quarter, the Commerce Department reported this week .
 "Although the numbers tend to jump around from quarter to quarter, these figures tend to validate a strong cyclical recovery in the remodeling market and a healthy long-term growth trend," said Robert "Jay" Buchert, president of the National Association of Home Builders (NAHB).
 Average remodeling activity during the five-year period 1987-1991 was $100.1 billion compared to $67.2 billion per year during the 1982-86 period. The average growth rate during 1982-86 was 13 percent and during 1987-91 was 10 percent.
 Remodeling activity totaled $97.5 billion in 1991 and is expected to grow to $105.1 billion this year, according to NAHB forecasts.
 "The repair and remodeling market is poised for a decade of healthy growth," said Buchert. "For the decade as a whole, remodeling expenditures will increase at a 6.1 percent annual rate and should top the $180 billion mark by the year 2000."
 NAHB anticipates remodeling expenditures will grow at a rate of 4.1 percent during the first half of the 1990s and expand to a 7.4 percent rate during the latter half of the decade.
 The relatively slow rate of home sales that has depressed the recent past and near future will continue to act to impede the rate of improvement during the first half of the decade, Buchert said. "This is because major improvements tend to be undertaken within the first few years of occupancy. The lower number of home purchasers means a smaller pool of serious remodelers."
 Stable economic expansion through the second half of the decade will spur remodeling to new heights, Buchert said. "Renewed economic growth will lift incomes and consumer will be more willing to undertake larger projects."
 -0- 11/12/92
 /CONTACT: Jay Shackford of the National Association of Home Builders, 202-822-0406/ CO: National Association of Home Builders ST: District of Columbia IN: SU: ECO


TW -- DC017 -- 0207 11/12/92 13:07 EST
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Date:Nov 12, 1992
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