Home improvement is a hot sector of the housing market. In fact, in 2022, homeowners spent a total of $472 billion on home improvement projects. That number is expected to decline slightly in 2024, but not completely, according to the Joint Center for Housing Studies of Harvard University. In addition to boosting homeowner happiness, many of these upgrades can also add value to your home.
As a result, they’re often considered a good investment. However, not all home improvement projects are created equal. And some may even decrease your home’s value. Considering these facts, it’s important to carefully consider the pros and cons of any remodeling project before committing to it.
A Home Improvement Expert
As homeowners spend more time at home, some are hiring home repair and improvement professionals to make improvements. And the industry is booming during the pandemic. According to NerdWallet, 3 in 5 homeowners have undertaken some form of home improvement since March 1. The reasons behind these projects vary. Many consumers are upgrading worn-out surfaces, while others want to make their homes more livable. In a recent report by the National Association of Realtors and the National Association of the Remodeling Industry, 84% of consumers who renovated their homes reported that they wanted to spend more time at their home; 69% reported increased enjoyment.
Despite the COVID-19 pandemic, these results suggest that a home renovation is still a smart choice. And if you’re looking to complete a home improvement project, there are plenty of options for contractors and materials. But before you make a purchase, check the credentials of any professional you hire. A reliable contractor should have a valid license and insurance. You can also find out if a home improvement company has a good reputation by asking friends and family about their experiences.
A home improvement specialist will help you create the kitchen, bath, or basement of your dreams. They’ll work with you to find the right design, fixtures, and colors. They can also guide you through the permit process and other requirements. And they’ll be on hand to answer any questions you might have along the way.
The biggest trend in remodeling appears to be a shift away from pricier projects and toward simpler ones. Homeowners are spending more on things like installing a new door or replacing the toilet, but less on a complete bathroom remodel or an outdoor kitchen. It could be because homeowners underestimate how much these projects will cost, says Joe Derochowski, a housing and construction adviser at market data firm Circana.
But the pullback from more-ambitious projects shouldn’t be interpreted as a sign that homeowners are giving up on improving their homes. In fact, Derochowski expects homeowners to revisit their pricier plans later in 2024 as the economy improves. “There is pent-up demand that will bring opportunity for spending on larger home improvement projects over the coming year as the economy improves,” he says. “People will feel more confident about their finances and want to make their home the best they can.” This will likely include upgrades that appeal to the broadest range of potential buyers, such as adding energy-efficient features or putting in new landscaping.