Home improvement is a popular activity for homeowners and can be an effective way to increase the value of a house. Home improvements can include remodeling, adding rooms or fixtures, updating finishes and decor, or any other work that increases the functionality or attractiveness of a home. Some projects may be DIY while others require the services of a professional contractor. Home improvement companies sell building materials and appliances, provide installation services, and offer design advice.
The home improvement industry has enjoyed solid growth in recent years and is expected to continue to grow in 2024. It encompasses the sale of home improvement products, construction materials and services offered by contractors and other tradespeople who help to build, install, modify or upgrade homes. The industry is affected by the overall health of the economy and consumers’ ability to finance home renovations.
A major home improvement project can be expensive and it’s important to have a clear idea of what you want before you start. It’s also important to set a realistic budget and stick to it. Otherwise, you could end up overspending or going into debt for your renovations.
Those who are thinking of renovating their homes should make sure they update their home insurance policy at the same time. As a house is renovated, its value will increase and the old policy may no longer be sufficient. It’s also a good idea to speak to a home insurance professional to determine what upgrades will add the most value.
According to a recent NerdWallet survey, fewer than half of homeowners who took on home renovations over the past two years said they were able to pay for them without tapping into their savings or incurring debt. The American Housing Survey, which surveys homeowner-occupants, asks respondents to self-report the projects they completed. But that survey doesn’t break out projects by scale, scope and cost, and it’s not possible to determine what percentage of homeowners were able to afford their renovations without dipping into savings or going into debt.
Some projects that may increase a home’s resale value include painting, upgrading kitchen and bathroom fixtures, adding an additional bathroom, and converting garages into living space. However, homeowners should keep in mind that high-end upgrades won’t always translate to higher resale values, and they may be too expensive for many potential buyers.
While some major home renovation projects are on hold due to rising prices, consumers still have an appetite for lower-cost projects they can do themselves. “Deck construction is up nearly threefold and fence construction is up nearly a quarter,” Anderson says. He believes rock-bottom interest rates are making these types of projects more appealing.
Before starting any home improvement project, it’s a good idea to get quotes from several different contractors. Look for licensed and insured contractors who have positive references from previous clients. In addition, New York state law requires a contractor to provide a written contract for any work performed on a home. The contract should include a timeline for completion, a payment schedule and as many specifics as possible for the types of materials to be used.