Home improvement, also known as house renovation or remodeling, is the process of upgrading or repairing one’s living space. It can be done to add functionality or beauty, or both, and may include adding new rooms or changing the layout of existing ones. Home improvements can also be made to increase energy efficiency or safety, as well as to reduce costs and/or enhance property value.
When making upgrades to a home, some homeowners focus solely on the resale value of their house, and others try to improve their comfort or enjoyment of it. It is important to consider how you will use the space before deciding what improvements to make, and to not go into debt to complete the work. If you’re planning to sell your home in the future, it’s a good idea to consult a real estate professional about what improvements will add the most value.
In the past two years, homeowners have spent an estimated $522 billion on home improvement projects. During this time, more than 115 million projects were completed, according to the American Housing Survey (AHS), which is conducted every two years. The survey includes a wide range of homeowner-reported expenditures for home repairs, improvements, modifications and additions.
A surge in home improvement spending is expected in 2023 due to several factors. Inflation is high, and many consumers are cash-strapped, so a lot of the larger projects that are typically done in years with lower inflation rates just aren’t affordable.
Another factor that will contribute to the surge in 2023 is the need for homeowners to update their homes to meet current building codes and standards, as well as repair damage that has occurred due to recent natural disasters. Additionally, low mortgage interest rates are helping to fuel the increase in home improvement spending.
The categories that are surging the most this year are related to exterior home improvement, including deck construction, awning installation and fence construction. These projects are a great way to add curb appeal and can be a nice addition to your property’s resale value.
Those looking to complete major renovations such as a kitchen remodel or adding a bathroom should talk to a real estate agent before beginning the project. This will help to ensure the home improvements are a good investment for resale and will be enjoyed by future buyers. Additionally, homeowners should avoid renovating just to keep up with the Joneses, as this can make their home less appealing and possibly reduce its resale value.