Home Improvement – Is it Worth the Money?

Home improvement is the process of improving or making additions to a dwelling. It may be done for a variety of reasons, including enhancing comfort, increasing energy efficiency, or preparing the house for resale.

Generally, the more expensive the project, the better the chances of recouping some or all of your investment when it’s time to sell. However, some projects don’t add value and could even detract from the property’s resale potential. For example, installing an above-ground pool is a poor choice if most homes in your neighborhood have in-ground pools.

A homeowner’s motivation for taking on home improvements can change over time, and may depend on a number of factors such as the health of their family, the age and condition of their home, or the desire to make a specific change. Regardless of the reason, it is important to choose a home improvement contractor that has experience and is licensed, insured, and bonded in your state. Homeowners should also consider the reputation of a contractor and check references before hiring them.

The most popular types of home improvement projects are painting, replacing light fixtures, and updating the kitchen. According to the NerdWallet survey, nearly all homeowners are considering at least one of these projects.

Homeowners spent an estimated $624 billion on home improvement projects over the two-year period that ended in 2021, up from $300 billion during the previous period. These projects are a sign of a growing economy, but experts say economic uncertainty and rising interest rates will influence the amount of home improvement work Americans undertake in the future.

When it comes to deciding which home improvement projects are worth the money, a real estate professional can help you assess the value of your house and recommend projects that will increase its resale appeal. However, you should be wary of any project that’s too personalized and may go beyond the taste of future buyers. Similarly, you shouldn’t make any improvements that will increase your living space to the point where you are paying more for your home than other homes in your area.

The survey from NerdWallet found that few homeowners are able to afford most of the projects they’re planning. About 20% of those who took on projects over the past two years had to sacrifice other purchases or tap into savings, and 12% had to take out debt.

In contrast, the biggest home improvement retailers, Lowe’s and Home Depot, reported a drop in remodeling activity this week. The companies blamed Covid-19 and other economic factors, including higher borrowing costs and declining home sales. Nonetheless, some experts believe that these declines are temporary. “I think the housing market is a little weak right now,” says economist Paul Anderson at First American Financial. “But I still expect spending on home improvements to be a big part of the recovery.”