Home improvement is an industry that encompasses the sale of building materials, appliances, decor and other home enhancement products, along with the services provided by contractors, tradespeople and others who help to build, install, modify or upgrade homes. It is a highly fragmented market with many local competitors and some well-known national players. The industry has seen excellent growth results in recent years, fueled by an increase in spending on home improvements and renovations during the COVID-19 pandemic.
The home improvement market is a major part of the construction industry, with an estimated total value of around $4.6 trillion in the United States alone. As the economic recovery continues, home improvement projects are expected to remain popular among homeowners, especially those that can improve the resale value of their homes. However, it is important for homeowners to be aware of the potential downsides of home improvement projects and to proceed with caution.
Despite the doom and gloom of the current housing market, a significant portion of the US population is still interested in making home improvements. In 2021, more than half of American homeowners undertook a project, with kitchen remodels and bathroom renovations leading the way. In addition, more homeowners are upgrading their security systems.
According to a new report from NerdWallet, fewer than half of homeowners who undertook projects in the past two years were able to afford the majority of their projects without tapping into savings or going into debt. The study based its findings on the most recent American Housing Survey data, which asked homeowners to self-report what they spent on projects in the previous two years.
One of the biggest mistakes homeowners make when undertaking home improvement projects is taking on more than they can handle. It is crucial that homeowners carefully plan and budget for their projects before starting them. Moreover, it is also important to work with qualified and trusted service providers to ensure that they get the best value for their money.
In order to maximize the return on their investment, homeowners should choose projects that are both cost-effective and likely to appeal to a wide range of prospective buyers. It is also helpful to consult with a real estate professional before beginning any high-end projects.
The most expensive improvements are those that add space, such as the addition of a room or the conversion of an attic or basement into living quarters. Those projects can add as much as 20% to the value of a home. Other high-return projects include adding a patio or pool, replacing old doors and windows, and adding an outdoor fireplace.
Keeping up with the latest trends in home improvement is an essential component of maintaining your home. In fact, there is always a project to be done, from fixing a broken doorknob to repairing sidewalk cracks. To help you get started, we’ve gathered the latest industry reports and expert tips for you in this collection of articles on home improvement.