Going to extremes: the remodeling industry is abuzz with activity, and ABC's 'Extreme Makeover: Home Edition' leads the charge.

James Dolan and his wife had just purchased his childhood home for their family, but money was tight. So the father of four took a second job at an electronics store, and that's where the unthinkable happened. A deranged gunman walked into his shop, opened fire and killed three people.

Dolan was shot in the head. Though he survived, the St. Petersburg, Fla., native lost his eyesight. Since then, he has been unable to perform simple tasks, let alone any up-keep on his home.

However, Dolan's heart-wrenching story turns into a heart-warming tale on "Extreme Makeover: Home Edition." In each episode of the ABC megahit, which started its third season last month, a deserving family in a run-down house is given the makeover of a lifetime by a team of designers, contractors and workers who rebuild their entire home in seven days.

In the case of Dolan, it meant a brand-new home and an even more amazing backyard, which included the soothing sounds of waterfeatures, large rustling palms and wind chimes. "I think the reason this show is so popular is because it shows you that people are good, communities come together to help a family in need and neighbors still look out for each other," says Diane Korman, coordinating producer of the show, which garnered an average of 15.8 million viewers per episode last season.

"This is about wish fulfillment. We make their dreams come true, and that's our purpose," she adds.

Beyond its tear-jerker exterior, the show is indicative of a larger trend. Dramatic makeovers have mesmerized the country--and the remodeling industry is booming as a result.

By utilizing donated products and services, "Extreme Makeover: Home Edition" also is able to showcase the latest in interior and exterior design. For generous vendors such as those in the pool and spa industry, this tried-and-tree formula serves as a boon for business.

Behind the scenes

In 2003, residential remodeling was a $233 billion industry. It accounted for 40 percent of all residential construction spending, according to a study by Harvard University's Joint Center for Housing Studies. Nearly 20 percent of those remodeling expenditures were spent on property improvements such as new patios.

What's more, high-end remodeling is one of the fastest-growing segments. Owners with incomes of $120,000 or more nearly doubled their home-improvement spending from 1995 to 2003, states the Harvard study.