The Home improvement industry — the sale of building materials, appliances, decor and services to help consumers renovate, repair or upgrade their homes — has seen excellent growth results in recent years. The market also includes a variety of companies that provide the labor and expertise to execute these projects. The COVID-19 pandemic helped boost the industry, and a number of factors continue to drive it forward.
One major reason is that many homeowners have tapped into their savings and emergency funds to finance projects, which helps ease the financial burden. In addition, rock-bottom interest rates have made borrowing to pay for renovations more attractive. Finally, the aging Baby Boomers are also driving much of this spending, as they are upgrading their existing houses to suit their changing lifestyles.
Many of the projects surging in popularity have to do with work done outside the home, namely landscaping and decks and fences. Anderson says the number of people putting up decks has spiked 275% while the number constructing fences has risen 144%. Anderson points out that these types of improvements are often cheaper than interior work, making them a good choice for consumers looking to get the most bang for their buck.
Another factor is the strong desire among many homeowners to improve their living spaces, with remodeling a kitchen or bathroom the top projects on most people’s lists. Other popular projects include adding a deck, replacing carpeting and updating lighting fixtures. But most cited reason for taking on these projects is simply wanting to make their home more comfortable and feel like it’s a better fit for them.
But before you start digging into your wallet, it’s important to keep in mind that not all home improvements add value and most don’t recoup their costs at the time of sale. The best way to make sure that you’re getting a good return on your investment is to compare it to the returns enjoyed by other homes in your neighborhood.
When choosing a contractor for any home improvement project, it’s important to avoid going solely on price alone. Contractors vary greatly in quality and in their ability to complete a job on time or even at all. In order to get a better sense of the different options available, talk to friends and neighbors about contractors they’ve used in the past and ask for references.
It’s also a good idea to compare different companies and get estimates from several contractors before making your decision. Be sure to ask about any warranties and guarantees that may be offered for the work being done. Lastly, don’t forget to check for licenses and insurance coverage. The last thing you want is to be held liable for any accidents or damage that could occur during the project. In addition to a license, the contractor should have liability and workers’ compensation insurance coverage in case an injury or property damage occurs on your site. This type of insurance is usually included in the contract, but it’s worth asking about it if not.