However, expect a slow down in growth due to the slow down in the overall housing market due to interest rates and the nagging concept of bubbledom. Remodeling accounted for about 40% of the overall residential construction market. Kermit Baker and William Apgar of the Harvard Joint etc. and Gopal Ahluwalia of the NAHB spoke about trends and numbers in the remodeling industry. Overall, it looks good, thanks in large part to the growing strength of Generation X and the money in the pockets of the Baby Boomers (both leading edge and trailing edge).

Gopal pointed out that about 50% of the remodeling market is affected by interest rates, and that leaves 50% of the market unaffected. “When the roof leaks,” says Gopal, “you don’t wait for interest rates to go down to fix it.” Comforting words.

Expect the condo market to be the strongest segment, partly because the high price of land forced Generation X into condos. These GenXers are spending more on home improvements than their Boomer predecessors did at the same stages of life.

And GenX likes the higher end stuff, those super kitchen appliances and other marks of high taste and quality. Even though Gen X is more DIY oriented than Boomers were, they are spending a lot with pro remodelers.

Other tidbits offered included the fact that the larger the remodeling firm, the greater its employee productivity as measured in revenue per employee. Expect an easing in the growth rate of remodeling in the first-time buyer/affordable home sector. Expect continued growth in the flowing areas, listed with the first showing the greatest growth: Kitchen/Bath, Townhouse/Condo, Custom/Luxury, Move Up Homes, and 2nd/Vacation Homes.

More later.