By Jessica Brilliant Keener, Globe Correspondent, 6/20/2004

Despite the many other uncertainties of real estate, one thing is sure: The home remodeling business is all about steady growth as aging baby boomers, whose impact on this sector has been unrelenting, move into their 50s and beyond.

''Today, this population has different needs," said Kermit Baker, director of Remodeling Futures, a program at Harvard University's Joint Center for Housing Studies. ''Remodeling boomers are more likely to hire a professional contractor than take on a do-it-yourself project, and with kids off to college or out on their own, people in their 50s and 60s need less space, not more."

Empty nesters Susan and John Howe of Manchester, N.H., pondered changing their living arrangements after their two children went off to college.

Should they downsize to a condo, or improve their home? They loved their 1928 Victorian, with its proximity to town and the local bus services. But they worried that the four-bedroom house, which included an upstairs master bedroom, might eventually prove a problem as the couple ages, because of the stairs. Other main rooms had no practical purpose. The living room, for example, was large but no one used it. Ditto for the dining room, which the Howes utilized twice a year.

Opting to improve, they gave Dennis Mires of Dennis Mires, The Architects, their wish list: more light, less clutter, and smarter configuration of the first-floor space. They left the upstairs as is.

''We made a list of things we wanted to do so we could grow with the house as we grew older," said Susan Howe.

Walls came down and built-ins were added to form a bright, open kitchen and adjoining family room. A new office and full bath, formerly the old dining room and half-bath, will morph into a master bedroom suite in the future. Upgrades such as hardwood floors, crown molding, granite countertops, and maple cabinets give the space an enduring warmth.

''We actually live in the living space," Susan Howe said. ''Now, we absolutely would want to stay here into old age."

Though Howe said money was not a deciding factor in choosing to stay, she knew that the $150,000 invested in the renovation would enhance its resale value. Neighboring houses were selling for $500,000 -- quite an increase from the $32,000 the Howes paid for the house more than 30 years ago.

Peter Feinmann of Feinmann Remodeling in Arlington sees boomers investing more money in less space. Clients are willing to pay a premium for products and renovations that will enhance their lifestyles. Granite countertops in the kitchen are a given, he said, as are stainless-steel refrigerators and professional-style stoves. Custom built-ins for home offices are also common.

Boomers can be trendsetters, but the remodeling industry is strong for many reasons. According to Baker, more than 110 million housing units in the country built in the 1950s and '60s need updating. And thanks to low mortgage rates, more people are able to buy homes or refinance the ones they have, funneling the extra money into updating their homes. In the Northeast, dollars spent on remodeling surpassed dollars spent on housing construction from 1994 to 2001, Baker said.

During 2003, the Remodeling Activity Indicator, devised by the Joint Center for Housing Studies, revealed that US homeowners spent $130.4 billion to remodel homes; $472 billion was spent on new single- and multifamily construction, Baker said.

''After rising by more than 10 percent in 2002, home improvements increased another 7 percent in 2003," Baker said. ''With an improving economy, home-improvement activity is expected to see even further gains in 2004."

Long term, the Remodeling Index, a monthly survey conducted by the National Association of Home Builders, reports that the remodeling market is expected to increase at an annual rate of a least 5 percent during the next 10 years and at some point during this period may exceed the market for new units.

But what about enhancing the bottom line? Does remodeling add value to a home?

Real estate agent Lee Cooke Childs of Chobee Hoy Associates in Brookline says yes, but warns against over-improving a home, compared to others in the neighborhood. In Boston, an extra bathroom is definitely worth the money spent. So too, is an extra bedroom, even if it means carving it out of an existing space. On the other hand, a complete kitchen makeover has to grow with the investment.

''You won't recoup your money in a year. More like three to five years," Childs said.

Broker Bob Meehan, manager of the Century 21 North Shore office, said the number one bang-for-your-buck improvement is adding a bathroom. A family room addition on the first floor adds value, but redoing a basement-level space is not such a sure thing, he said. Over-customizing, such as adding a second fireplace, will not bring a return.

Still, some things never change.

Roger Gallagher, president-elect of the Eastern Massachusetts division of the National Association of Remodeling Industry, points out that the most popular remodeling project is still the kitchen with family room add-on.

''It's the kind of remodel that busy, dual-professional parents are looking for: hangout space that helps them connect to families," he said.

Gallagher anticipates an increase in what he refers to as universal design, or designing for all capabilities and age groups: old, young, and disabled. It's sensible design set up to be accessible to all people. Wider hallways, for instance, can accommodate someone in a wheelchair.

''There's no denying that baby boomers create trends that will continue to emerge slowly over 10 to 15 years' time," Baker said. He cites the do-it-yourselfers of the 1980s who drove the dramatic growth of home improvement stores such as Home Depot.

Another big issue for boomers is how to take care of parents who are living longer. One answer is the in-law suite, which Meehan said can bring high value to a property -- as long as it's legal.

Typical are Helene and Bob Smith, who moved into a new house in Bourne in 2000, where, finally, they had enough space for their preteen son and teenage daughter, plus a fourth bedroom for guests. Soon after the move, they decided to build an in-law apartment -- an 800-square-foot addition with a bedroom, kitchen, and living room -- for Bob's aging mother. A separate entrance leads outdoors. A hallway links the apartment to the main house.

''She has her own space; we have ours. And my mother really likes it. She helps around the house. It benefits everybody."

This story ran on page H1 of the Boston Globe on 6/20/2004. © Copyright 2003 Globe Newspaper Company.

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