Credit: Mike Right

Our second annual forecast of the 100 U.S. markets that will be most active in 2012 is based, as was the inaugural list, on the Residential Remodeling Index, or RRI. The good news: more than three-quarters of the cities on the list are over 80% of the way back to their 2007 levels of remodeling activity. The bad news: regardless of location, the forecast is for slow growth through most of 2012.

If your city is on the list, you’re probably doing better than most. But even if it’s not listed, it helps to remember that all remodeling is local, and that certain neighborhoods are likely to perform better than others in any given market. Our profiles of the 20 best-performing markets provide some insight into the factors that are influencing the depth, breadth, and speed of the recovery.

Click here to see the Top 100 Markets of 2011.