The home improvement industry has seen tremendous growth over the past few years. This is due to a combination of factors, including a low inventory of new homes for sale and rising interest rates that make homeownership more costly. This article will explore the latest trends in the home improvement market, including the most popular home improvements and how homeowners are maximizing their returns on investment.
Home improvement is the remodeling, altering, painting, repairing, renovating, restoring, or making additions to a residential or noncommercial property. It also includes the installation of heating, ventilation and air conditioning systems, water heaters, furnaces, ductwork, central vacuum systems, air cleaners, insulation, window and door replacement, roof coverings, siding, electrical and plumbing systems, and the construction or repair of driveways, sidewalks, fences, or other exterior or interior components of a dwelling.
One of the main reasons to do home renovations is to increase a home’s resale value. However, homeowners must balance resale value with their own comfort and enjoyment of their living space. Renovating solely based on the idea of what will sell at a future date can result in a house that feels like a showroom rather than a place to live.
According to the Contractor Growth Network, some of the most popular home improvement projects include sparkling bathroom overhauls and major kitchen renovations. However, these projects do not always offer a high return on investment. According to a report by Zonda Media, homeowners only receive an average of 60% return on their kitchen and bath renovations.
Other home improvements that tend to pay off include the addition of a garage and adding a bedroom or office. Adding a bedroom to a home usually adds around $10,000 in value. Additionally, adding a garage can increase the square footage of a home and provide extra storage space.
In addition to these major home improvement projects, there are several small projects that can boost a home’s curb appeal. For example, a simple garden can improve the overall look of a home and increase its value. Other small improvements that can have a big impact on a home’s appearance include adding a mailbox, installing security lights, and painting a front door.
Although home improvement projects can cost a significant amount of money, there are ways for homeowners to finance their renovations. For example, homeowners can use a home equity line of credit (HELOC) or a cash-out refinance to get funds for their project. Homeowners may find that these financing options are more affordable than unsecured loans or credit cards. Additionally, many homeowners may qualify for special refinance programs offered by Freddie Mac and Fannie Mae. Regardless of the type of loan you choose, it’s important to research the best options and lenders for your specific financial needs. Then, you can begin your home renovation with peace of mind.