Home improvement is a broad industry that encompasses the sale of building materials, appliances, decor, and contractors. It includes projects like kitchen renovations, bathroom remodels, and security system installations. This sector has reached excellent growth results in recent years, especially during the COVID-19 pandemic.
Homeowners are focusing on updating their homes to improve comfort and functionality, as well as increase value. This year, many homeowners will take on projects to upgrade their bathrooms, kitchens, and other rooms. Some will also replace fixtures and appliances to save energy costs. While these improvements are worthwhile, homeowners should consider the return on investment before starting a project.
Adding new windows, a heat pump, and insulation can lower energy bills and pay for themselves when the homeowner sells. Other types of upgrades, however, may not provide a high return on investment and could actually decrease a home’s value.
In addition, many homeowners are finding themselves paying for the cost of these projects out of pocket. The most common methods for funding home improvements include selling items, tapping into or exhausting emergency savings, and taking out debt. A small number of homeowners have even refinanced their mortgages to cover the costs of home improvements. To avoid being ripped off, consumers should always get quotes from multiple companies and make sure that any contract has the contractor’s name, address, and MHIC license number preprinted on it. This will ensure that the consumer is not being charged more than the agreed upon price.