Home improvement, also known as home renovation or remodeling, is the process of upgrading one’s residential property with the purpose of making it more enjoyable, comfortable and functional. It can also be a way of increasing the value of a house, thereby helping to make a profit when selling it in the future. Home improvements can include interior and exterior work, including remodeling rooms, landscaping the yard and building structures like decks and fences.
There is a lot of money to be made in the home improvement sector, especially when homeowners make smart choices about the projects they undertake and avoid those that won’t pay off in terms of increased resale value. The best way to maximize the return on investment (ROI) from any home improvements is to hire a qualified general contractor to carry out the work.
Remodeling your home can be a complex process, and it is important to choose the right contractor for the job. The contractor should have a background in construction and experience in working on homes of all types, sizes and styles. The contractor should also have a portfolio of past jobs and references from satisfied customers.
Home improvement projects can be small, such as revamping your floor or a quick painting job, or large, such as adding an addition or completely renovating your kitchen or bathroom. Many homeowners find themselves inspired to continue with other projects once they’ve completed a successful renovation, and the National Association of Realtors reports that after remodeling just one room, 86% of consumers felt motivated to do more work on their home.
According to industry reports, the home improvement market was very active during the Covid lockdown and saw a significant spike in spending by households on both small and large projects. Consumers spent more than $363 billion on remodeling and home improvements in 2020 and 2021, and that number is expected to reach nearly $472 billion by the end of 2024.
The categories that are surging the most, however, are related to work on outdoor spaces, including constructing decks and fences. These projects are likely being driven by rock-bottom interest rates and the fact that they are seen as comforting investments during unsettling times.
Another thing to keep in mind is that the ROI on home improvements can vary significantly based on where you live. The type of home improvements you can expect to receive the greatest return on are those that are consistent with the overall style and character of your neighborhood, and which are in line with the average price of neighboring homes.
Before you start any home improvement projects, consider your options for financing them. In addition to savings and cash, there are a variety of loan types available, from personal loans to home equity lines of credit. The key is to choose the loan option that fits your financial situation and goals. Also, remember that it is important to plan your project well in advance so you can save and budget for the entire project, and complete the work on time.