The Home Improvement Industry

The home improvement industry is made up of retailers and service providers that sell building materials, appliances, decor, and other home-related items. It also includes contractors, tradespeople, and others who help people renovate, repair, and improve their homes. The industry’s growth results from consumers spending money on improving their living spaces, as well as a growing desire to make their home more attractive and functional.

In the United States, homeowners spent over $1.4 trillion on home improvements in 2017. Many of these projects are aimed at increasing the value of a property. Others may be aimed at making the house more comfortable for its inhabitants or reducing energy consumption.

Several factors are driving the growth of the home improvement industry, including higher construction costs and rising housing prices that have increased the amount of equity available for home improvement loans. A growing population of older homeowners is another factor. People in this age group are more likely to have a larger amount of money saved for retirement, and they often choose to use this money to remodel their homes.

While some home improvement projects add value to a property, others do not. It is important to consider how a renovation will impact a property’s resale value before starting a project. If you are not sure whether a project will increase your property’s value, consult with a real estate professional to get their opinion.

Homeowners can also finance some home improvement projects through mortgage refinancing. However, it is important to note that the home refinance process can take up to six months and requires a credit score above 700. Moreover, refinancing can result in higher monthly payments and a longer loan term. Consequently, it is important to weigh the benefits and costs of home refinancing against other options for financing home improvements.

In unsettling economic times, the home improvement industry is a refuge. People are willing to spend more on upgrades, and rock-bottom interest rates make them more attractive. Some of the most popular home improvement projects involve overhauling surfaces underfoot and overhead. For example, 5.2 million homeowners replaced carpeting, flooring, and paneling in 2017, while nearly three-fourths of homeowners built decks or fences that year.

If you are planning to do some home improvement this year, don’t forget to update your insurance policy. Home improvement projects can raise your property’s value, so you need to ensure that your insurance is up to date.

A home improvement project is a great way to make your property more appealing and functional for you and your family. Be sure to do your research and hire reputable contractors before jumping into any renovations. Remember, not all contractors are created equal! Look for a licensed contractor who is insured and has good references. Also, if possible, try to do some of the work yourself so that you can save on labor costs. Also, don’t go overboard – overspending on renovations can detract from your property’s overall value.