Home improvement can be a rewarding experience that helps homeowners make their houses more comfortable and attractive. It can also boost neighborhood standards and raise property values. While it’s possible to do some of the work on your own, experts recommend relying on professionals for electrical wiring, plumbing, and cutting through walls. In addition to increasing the value of your home, making smart choices can help you save money on your project.
Despite some recent economic headwinds, the home improvement market is still growing. But the tempo of that growth is slowing down. Just this week, both Lowe’s and Home Depot reported that shoppers are shifting from big renovation projects to cheaper do-it-yourself fixes. For instance, while the number of tub-to-shower conversions is down, home painting and landscaping projects are up.
The American Housing Survey, which interviews homeowner-occupied households, shows that most homeowners surveyed completed projects during the past two years. The surveys ask homeowners to report what they spent on various categories of improvements, including kitchen renovations and security system installations. The average cost of these projects was $4,838.
A majority of the upgrades were done for comfort and enjoyment. Almost half were to upgrade worn surfaces, finishes, and materials. Adding living space was another top motivation for homeowners. Almost one in five said they were making improvements to prepare their homes for sale. Other reasons for improvements included repairing damage and improving functionality.
Some of the biggest expenses were related to bathroom remodels and kitchen remodels. According to the NAR’s 2022 Remodeling Impact Report, these are the most popular types of home improvements for both improving livability and boosting property values. Homeowners who did these projects were more satisfied with their homes than those who didn’t.
Homeowners who spent money on these projects said they used cash or a combination of savings and borrowing. The most common source of funding was credit cards or personal loans. Some homeowners also borrowed against their home equity.
While the home improvement market is still growing, experts say it will begin to cool down in 2024. That’s because the economy is slowing, interest rates are higher, and supply chain issues continue to plague the industry.
The bottom line: The best home improvements are ones that fit the overall character of your house and will add to your lifestyle. They should also be within your price range and the average cost for similar homes in your neighborhood.
When it comes to remodeling, the key is doing your homework and finding a trustworthy contractor with a good reputation. It’s also important to plan carefully, set a realistic budget, and keep your expectations in check. Otherwise, your home improvement project could end up costing more than you expected—or worse, it may not increase the value of your home at all.