Home improvement, or the process of renovating and beautifying a house, is an important part of maintaining a property. It also increases the home’s overall and long-term value. Home improvements also affect the community in terms of raising neighborhood standards and boosting local markets for materials and housing products. Home renovations and repairs can be costly, but the investment in your home will pay high dividends in comfort and utility for you and your family.
While some homeowners may have abandoned the idea of completing home improvement projects during the pandemic lockdown, many others have developed a renewed interest in improving their living spaces. In fact, remodeling activity is poised to increase over the next couple of years. This is good news for companies such as Home Depot that have benefitted from Americans’ obsession with renovating homes during the pandemic.
The type of home improvement project you undertake will greatly impact whether or not you will be able to recoup your costs when it comes time to sell. The best return on home improvement investments typically involve minor cosmetic upgrades that do not significantly alter the structure or layout of a residence. These projects include painting, re-grouting tile, and power washing the exterior of your home.
Other popular home improvement projects that offer a higher return on investment include adding a patio, updating kitchens, and installing a new security system. During the 2021 survey period, Home Depot reported that homeowners spent an average of $4,838 on home improvements. Spending varied by homeowner age and the amount of time they had owned their home. For example, newer homeowners and those who purchased their homes within the past five years spent twice as much on improvements as those who had lived in their houses for more than a decade.
When deciding to invest in home improvement, it is vitally important to do your research to ensure that you will get the most bang for your buck. A quick search on the internet will provide you with a wealth of information on how much certain projects cost, what they will do to your home, and what the average return on investment is for each type of project.
In addition to research, it is important for homeowners to understand how the economy and market trends impact the cost of certain home improvements. For example, during the early days of the pandemic, there was a surge in projects such as replacing windows and repainting houses. However, the cost of these projects skyrocketed due to the sudden need for labor and material.
Finally, if you are planning on taking out a loan to finance your home improvement project, be sure to shop around for the best rates and repayment plans. While some people are able to afford the expense of a large home improvement project without using credit or raiding savings, more than half of those surveyed by NerdWallet say they were unable to complete all their projects without tapping into their finances or putting themselves in debt.