Home improvement refers to any project a homeowner undertakes to increase the comfort and value of his or her home. It can include a wide range of renovation projects, from a minor kitchen upgrade to installing a whole new bathroom. Homeowners may also add an extra room to their house or make structural changes. Regardless of the scope of the project, it’s important that homeowners approach each home improvement with an eye toward resale value.
During the two-year period covered by the 2021 American Housing Survey, homeowners completed some 135 million home improvement projects. That’s an impressive number and a big jump from the previous year, when they did about half as many projects. But that’s not necessarily a sign of rising costs, which have been relatively flat since about 2009. Inflation is actually the biggest driver, as it’s made many home improvement projects more expensive than they would have been in the past.
That being said, most homeowners are still keen to tackle some home improvement projects this fall and winter. A recent NerdWallet survey found that 42% of those surveyed said they were planning on spending money on a home improvement project in the near future. Of those, 26% planned to use cash they had saved up. Another 31% said they were going to borrow the money for their project. And 17% were going to turn to credit cards.
Of those surveyed, 54% said they were thinking about home improvement projects in order to make their house more comfortable for themselves and their families. And about 40% of those say they look to online content for ideas on how to improve their homes.
But the home improvement sector has some concerns about its prospects moving forward. For one, rising inflation and the prospect of a recession are weighing on consumers’ minds. And second, many of the improvements that are growing in popularity involve work on the outside of a home, such as adding a deck and building a fence. This type of project is often cheaper than a major kitchen or bathroom remodel, and it’s something that can be done on a much smaller scale.
The best types of home improvement projects are those that have a solid track record of increasing a house’s value when it comes time to sell. Ideally, those projects should be fairly universal so they can appeal to buyers from all walks of life. Taking the time to do this research before starting any renovations can help homeowners avoid wasting money on a project that will only have a marginal return on investment. It’s also a good idea to talk to a real estate agent about a potential project before undertaking it. They can provide valuable insights about what types of projects have worked well in their neighborhood and the surrounding area. This can save a lot of time and money in the long run. And it can also help a homeowner avoid making a home improvement mistake that could actually decrease resale value.
