BOSTON -- September 22, 2009 -- The remodeling industry is still recovering from the housing downturn, economic recession and significant loss of home equity loss, according to the Remodeling Industry Update released by Harvard University’s Joint Center for Housing Studies (JCHS).

The center’s Leading Indicator of Remodeling Activity (LIRA) points to the market nearing a cyclical low by early 2010 to be followed by a recovery in the first half.

Planned spending is recovering faster for upper-income homeowners, for less-leveraged seniors and for smaller cash projects.

Other findings were that stimulus program/green initiatives have had only modest impact on home improvement spending. For example, less than half of contractors, reporting on the basis of 2008 revenue, say they have worked on projects funded under the stimulus program. Of those who worked on such projects, building envelope energy tax credit projects dominated their stimulus-funded activities.