Home improvement refers to renovations and repairs that add function, value or beauty to a house. They may be small, like a new faucet or light fixture, or large, such as a kitchen remodel or an addition to the house. Regardless of their size or scope, renovations can be costly, so homeowners should understand the factors that affect cost and return on investment for each type of project.
While there is a huge ‘grey market’ of unlicensed contractors, there are also many professional companies that do good work and stand behind their work. They are able to provide references and proof of insurance, which is a big plus for any homeowner looking to hire someone. They are also recommended to join a professional association or be accredited by a trade organization, which provides assurance that they follow industry best practices.
Many homeowners who undertake home improvement projects say they are doing it to make their homes more comfortable for themselves and their families. Others are improving their houses to increase their resale value or because they need upgrades for safety or functionality. Some improvements are critical to a household’s health and safety, such as fixing electrical problems or replacing old roofing. Others may be more cosmetic, such as refinishing hardwood floors or installing new landscaping.
According to the Joint Center for Housing Studies of Harvard University (JCHS), home renovation spending peaked in 2022 and is expected to decline in 2024. While a declining real estate market may be a reason for the decrease in spending, it should not deter homeowners from investing in their homes as long as they choose wisely and keep costs low.
The areas that are surging the most for home improvement are projects outside of a house, such as deck construction or fence installation. This is likely due to rock-bottom interest rates, which makes spending money on a home more attractive than borrowing it. Another reason is that people feel more secure when they know their property is well-protected.
For those planning to sell their homes, it’s important to remember that any changes made should be in keeping with the neighborhood. Over-improving a house beyond what is typical for the area could turn off potential buyers or even cause them to avoid your home altogether.
When it comes to the overall return on your investment, the best home improvement projects are those that will increase a house’s efficiency. For example, adding new insulation or a heat pump can help reduce energy costs and save on utility bills. They are also a great way to increase the overall home value and make it more attractive to prospective buyers.
If you are thinking about making some home improvements, you should consider talking to a realtor in your area about which ones will be the most worthwhile for your specific situation and your goals for your house. Then, you can be sure that the money you spend on your renovations will be a wise investment for your future.