Home improvement is a wide-ranging category of projects that improve the interior and exterior of a home, including but not limited to kitchens, bathrooms, basements, garages, attics, and more. While some homeowners hire professional contractors to complete their home improvement projects, others choose to tackle the work themselves using DIY (do-it-yourself) techniques.
According to the Joint Center for Housing Studies of Harvard University (JCHS), U.S. homeowners completed about 135 million home improvement projects in 2021, spending an estimated $624 billion on those efforts. In terms of dollars spent, that number marks a doubling over just one year and outpaces the inflation rate.
The top motivators for homeowner home improvements include improving livability (cited by 84% of those polled), adding features or improving efficiencies (28%), and making aesthetic changes (16%, per the NAR). Moreover, homeowners who undertake home renovations often find satisfaction with their finished work, with 84% of those surveyed stating they enjoy their upgraded homes more than their previous ones.
Many home improvement projects are also a necessity, such as fixing a leaky roof or replacing worn out carpets. In addition, some home repairs can be tax deductible. Generally, homeowners can expect to recoup about 75% of their renovation costs when they sell their house.
When a home improvement project is undertaken, a contract will typically be drawn up between the contractor and the homeowner. The contract will contain the payment schedule, any warranties offered by the contractor, and the specific projects that are to be completed. The contractor should not require more than 1/3 of the total contract price as a deposit.
In addition to a written contract, a homeowner should also obtain any necessary permits before beginning any home improvement project. Permits may be required for projects that involve alterations to plumbing, electrical, or gas systems; installation or replacement of windows, doors, and/or screens; and construction of decks, porches, or sheds. Upon completion of a project, a homeowner must notify the city building department of any changes or modifications to the property, and a home inspection may be conducted.
Before beginning any home improvement projects, homeowners should consult a general contractor or an architect to discuss their goals and receive expert recommendations. Additionally, homeowners should consider the cost of the project and budget accordingly. Finally, homeowners should keep in mind that the best home improvements are those that add value and functionality to the home while increasing its appeal to prospective buyers. For example, replacing outdated flooring with hardwood or stone can be a high-end upgrade that increases a home’s resale value. Conversely, converting a bathtub into a shower is a low-cost fix that can instantly upgrade the appearance of a bathroom. Homeowners should also take into account how neighboring homes in the neighborhood have been improved and compare their property to similar houses that are for sale to gauge what kinds of home improvement upgrades will appeal to prospective buyers.