Remodeling activity slowed in the second quarter of 2006, according to the National Association of Home Builders' Remodeling Market Index, which measures remodeler perceptions of market demand for current and future renovation projects. The index for current activity decreased for owner-occupied units, but increased for renter-occupied units. The index for future remodeling activity decreased for both.

However, the remodeling market should perform well even as the housing market continues to slow, as remodeling is less volatile than new home construction, noted Dave Seiders, NAHB chief economist.