Home improvement, or simply home renovation, is the process of adding value to a home through updates and repairs. Though few investments recoup 100% of their cost, the resale value of a house can increase significantly with the addition of strategic upgrades that are attractive to future buyers. The National Association of Realtors reports that during the pandemic, homeowner interest in upgrading their homes spiked; however, homeowners were motivated to renovate for a number of reasons: updating worn-out surfaces, finishes and materials (31%), improving livability (20%) and increasing enjoyment with their home (16%).
Before kicking off any project, be sure to determine what will improve your home’s value and stick within your budget. Homeowners can choose to do some of the work themselves (think painting), hire a professional contractor or take on more involved projects such as kitchen and bath renovations, room additions or building a deck and fence. Regardless of the size or scope of your project, be sure to use design and modeling tools to help you plan and execute your home improvement goals.
According to the Journal of Commerce and Industry Statistics, spending on home improvement projects peaked in 2022 and is expected to begin declining in 2024 due to the housing market slowdown and higher labor costs. When choosing contractors and materials, it’s important to select reputable companies or individuals with experience and good references. Checking with your local licensing agency, reading online reviews and always getting a contract in writing are good practices.