Home improvement, the market for products and services that improve and upgrade homes, reached excellent growth results in recent years. This industry includes the sale of building materials, appliances and decor, as well as contractors, builders and tradespeople. It is also a key driver of consumer spending.
One of the few certainties in life is that homeowners will always need to do some home repair or renovation work. These projects may be necessary to keep the house in good condition, or they could be prompted by an urgent need for repairs (like a leaky roof or flooded basement). These can’t wait tasks usually make up the bulk of a homeowner’s home improvement budget.
However, many homeowners have more ambitious plans for improving their homes. A major renovation can add a lot of value, but it is important to carefully plan a project’s scope and cost before beginning work. It is also crucial to consider resale value and choose upgrades that will appeal to potential buyers.
When asked why they are planning home improvements, most homeowners say it is to make their house more comfortable and livable (54%), rather than to make the property more attractive or appealing to potential buyers (7%). This is an important distinction because it is unlikely that a home owner will recoup all of the costs associated with a significant renovation if they sell the property shortly after completion.
While the COVID-19 pandemic has put a brake on major home improvements, consumers are still willing to spend money on lower-cost upgrades and DIY projects. For example, a bathroom or kitchen remodel is still an affordable and popular way to boost a household’s value.
As a result, the broader housing industry has benefited from this trend and has seen strong gains in 2023. However, rising prices may be causing homeowners to shift their budgets away from these types of projects and toward more practical upgrades.
It is crucial to perform background research on contractors and aggregators before hiring them to do work on your home. Checking licenses and insurance, as well as requesting references and business accreditations is an important step in finding the right contractor for your needs.
The most common home improvements include adding a new bathroom or kitchen, installing a garage door, replacing windows or doors and repainting the exterior. These projects tend to offer the best return on investment. Another popular update is the addition of a patio or deck, which increases outdoor living space. Finally, converting an unused bedroom into a primary suite is a great way to increase the value of a property.
It is important to remember that not all improvements add value, and some can even decrease the resale price of your home. For this reason, it is important to focus on the most essential updates for your family’s comfort and lifestyle. It is also a good idea to talk to a real estate professional before making any major improvements.