Home improvement is the construction, repair, replacement, remodeling, alteration, conversion, renovation, modernization, or improvement of any land or building that is used or designed to be used as a residence or dwelling place. It includes, but is not limited to, the construction, repair, replacement, or improvement of driveways, sidewalks, swimming pools, fences, porches, garages, fallout shelters, and basements. This industry also encompasses the sale of supplies and equipment to consumers who undertake home improvement projects.
The majority of homeowners are considering taking on a home improvement project within the next two years, according to a recent NerdWallet survey. But before you go all-in on a major renovation, it’s important to keep the value of your home in mind — especially if you’re planning on selling it in the future. Ultimately, it’s better to renovate for your own comfort and enjoyment than to invest in a home that might not recoup the cost of your improvements when you sell.
Many of the top-ranked home improvement projects on the market are sparkling bathroom overhauls and kitchen renovations, according to the Contractor Growth Network. Other popular projects include painting rooms and installing new lighting fixtures. And while most projects will increase your home’s resale value, not every upgrade is created equal. Some upgrades will add a lot more value than others, so it’s important to research your project thoroughly before you commit to the expense.
A common mistake that some homeowners make is improving their home well above the average in their neighborhood. While this may attract buyers, it could cause your home to become an outlier and discourage potential future buyers from paying a premium for it. Instead, try to stay close to the average home price in your neighborhood.
In addition to affecting your home’s overall resale value, some improvements will require more ongoing maintenance than others. Keeping up with routine maintenance will ensure that any problems are caught early and won’t lead to costly repairs down the road. And it will help to keep your home safe and attractive.
The COVID-19 pandemic pushed home improvement spending to record high levels in 2022 and 2023. However, the home improvement industry is expected to decline in 2024 due to a decrease in housing sales and rising mortgage rates. It is also expected that rising labor costs will further depress the industry. This will slow the pace of residential remodeling and renovations. However, the industry has shown strong resilience and continues to grow in spite of these challenges. This growth is mainly driven by consumers who are looking for ways to improve their living spaces and make their homes more functional. In addition, the increase in homeownership has further fueled demand for home improvements.
