Home improvement is any alteration, repair, addition or modification to the interior or exterior of a dwelling. This includes landscaping, building a deck or fence, installing a swimming pool, adding an outdoor kitchen, painting or coating a driveway or sidewalk and other similar projects. These improvements can add value to your home and make it more attractive for prospective buyers. However, it is important to note that many homeowners do not fully recoup their costs on some types of home improvement projects.
This is due to the fact that not all home renovations and remodels are created equal. While some may bring a good return on investment, others aren’t worth the time or money. Keeping this in mind will help you decide what to renovate or remodel and how much to spend on it.
The first consideration when considering a home improvement project should be your own comfort and enjoyment. You want to live in a space that feels like home to you and not feel constrained by its limitations. Whether this means adding a new bathroom or converting your basement into an additional living space, the decision to renovate should be based on your needs and not what might appeal to potential home buyers down the road.
According to a recent report from the National Association of Realtors, only 20% of those thinking about taking on home improvement projects in the next two years say they are doing so to make their home more attractive to buyers. Most people are improving their homes to make them more comfortable and happy in their current surroundings.
Despite the sluggish housing market, renovation spending is still increasing. The surge in home improvement spending is partially a result of rock-bottom interest rates and the desire to improve one’s quality of life. It’s also a sign that Americans aren’t ready to give up on their homes.
According to the 2021 American Housing Survey, the average homeowner spent $624 on home improvement projects over a two-year period. This is a significant increase from the $300 billion spent in the previous decade.
Some of the largest increases in home improvement spending are for outside work, including landscaping and putting up a deck or fence. This type of home improvement can be a great way to increase your property’s curb appeal and create an appealing outdoor space. However, it’s important to consider the neighborhood when making this type of investment. If everyone in the neighborhood has a deck and you don’t, yours will stand out in a bad way.
Some of the best returns on home improvement projects come from energy efficiency upgrades. New windows, a heat pump or added insulation can decrease your energy costs and pay for themselves over time. This can also make your home more appealing to prospective buyers who are looking for ways to lower their energy bills.