Contractors are scrambling to find any kind of work, even small remodeling jobs, as the housing industry slump continues, according to the Associated Press.

Home remodeling has slowed as pessimism about home values sets in. Activity remained sluggish in the second quarter, according to an index from the National Association of Home Builders, and expectations for future activity were nearly flat.

Total money spent on home improvements and maintenance is expected to dip more than 4% this year, to $216.3 billion. The group doesn’t expect spending to reach 2007 levels again until 2010.

The pain is most acute in markets where home values are sliding.

“There are some weeks that are good, but there are more weeks when I think my phone is disconnected,” said Greg Miedema, president of Dakota Builders in Tucson, Arizona. “All in all, our calls are definitely down.”

He estimates that remodeling activity is off 10% or more in his area. Homeowners are shopping around more, taking longer to make a decision, scaling back their projects, and negotiating for price more aggressively.

Higher commodity prices from oil to copper have increased costs of materials such as wiring, plastic pipes, and roof tiles.

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