Home improvement is the repairing, renovating, altering, restoring, or modernizing of a residential building. The industry includes the sale of construction materials and the work performed by contractors, designers, and tradespeople. Home improvements are popular with homeowners for several reasons, including the desire to increase property value and create a more comfortable living space, and also as a way to update their homes’ appearances.
According to the 2021 American Housing Survey, about half of all homeowners worked on a project in the past year or plan to start one in the next. Among those who have started or completed projects, the most common fixes are interior painting (58%), landscaping (49%) and bathroom upgrades (47%). The most expensive home improvements are adding a primary suite or other bedroom (29%) and converting an attic or basement to living space (21%).
As homeowners get back to work after the pandemic, some of the top reasons for home improvement include making repairs as their house ages (69%), improving the curb appeal of their home (56%), preparing to sell the home (36%), and fixing up landscaping (21%). More than one-third of those planning home improvement projects in 2023 say they want to make more minor fixes like replacing a front door (7%) or replacing worn window blinds (10%).
The majority of homeowners who worked on home improvements in the past two years were able to pay for the majority of those projects without tapping into or exhausting emergency savings, using credit cards, taking on debt or selling other items. However, 20% did have to make sacrifices or go into debt to complete some or all of their projects.
It’s important to keep in mind that not all home improvements will add value to your home, and even if they do, the return on investment isn’t always the same as the cost of the project. The best way to ensure that a home improvement project is worthwhile is to consult a real estate professional, as they can provide advice on which projects will add the most value to your property.
Another mistake homeowners often make when working on home improvements is going overboard. If you spend a lot of money on high-end renovations, such as installing a hot tub in your backyard, you’re likely to outpace your neighborhood. That’s not a good way to attract the attention of potential buyers when you’re ready to sell your home.
In general, homeowners are making more modest improvements to their homes this year than they did during the COVID-19 pandemic. But, many still don’t want to give up their DIY spirit and are looking to do more projects in the near future. That’s great news for the home improvement industry, which is expected to reach excellent growth results in 2023. However, it’s a smart idea to always have a clear budget in place and avoid going into debt. Instead, try to find a financing option that fits your budget and needs.