As homeowners stop spending and construction grinds to a halt, Georgia companies that rode the wave of the housing boom are now just trying to stay afloat.

As foreclosures rise and home prices fall, builders such as Beazer Homes USA are hurting, but so are retailers such as Home Depot.

"Everyone understands that big home builders would have trouble turning numbers," said Roger Tutterow, an economics professor at Mercer University. "But we're also seeing spillover in related industries."

Atlanta-based Beazer recently restated years of financial reports and is in the throes of federal investigations. Because its financial records were not up to date, Beazer dropped off the Fortune 1000 list this year, after hitting a rank of 420 last year.

Home Depot is 22nd on the Fortune list, but in 2007 it saw annual sales drop 2.1 percent. It was the first such decline for the 30-year-old home improvement giant. But the rough patch could have a silver lining.

"During a period of economic softness, problems tend to surface at companies and get more attention than normal," said Wayne Hood of BMO Capital Markets, an equity research firm.

Home Depot is using the downtime to restructure, aiming to come out of the storm better-positioned, Hood said.

It cut employees at corporate headquarters while staffing up stores. Good service will give Home Depot an edge when shoppers do come back for home improvement projects, Hood said.

"Coming out of this cycle, they will be a stronger company than they have been in years," Hood said.

Dalton-based Mohawk Industries, which makes flooring for homes and businesses, also had problems. "It's not surprising," Tutterow said. "As goes housing, goes floor covering."

Atlanta-based apartment builder Post Properties might have benefited some from former homeowners seeking refuge in the rental market. But because Post caters to high-end renters less likely to be affected by subprime mortgage troubles, the company isn't seeing a huge increase in traffic.

Home furnishings rental firm Aaron Rents continues to grow, even as economic woes reverberate. Many of the Atlanta company's customers live in rental properties; some don't qualify for loans to buy furniture and appliances. Plus, in a tough economy, the company picks up some customers who rent furnishings, rather than buy.

Aaron Rents' first-quarter revenue grew 13 percent over the same period last year. Still, the company is affected by the downside of the economy.

"If a fellow loses his home now, he's not in the mood to get a television set," pointed out Gilbert Danielson, chief financial officer at Aaron Rents. The company has slowed its pace of store growth.

Georgia companies suffering through economic woes that started in 2007 are anxious for a turnaround, Hood said, but with a housing market that still shows no signs of life they may be in for a wait.

"Right now the best [thing] for them is to retrench and hope the cycle gets better," Hood said. "It may not be a hockey-stick recovery, but sideways for a while first."