Home improvement is the process of making renovations and repairs to a home. It includes both interior and exterior work. It can also include building structures, such as fences, sheds or decks, or installing features such as pools, patios and lighting fixtures. Home improvements can be made for a variety of reasons, including improving comfort and style, adding functionality, or increasing property value.
Home improvements often provide a good return on investment, especially those that boost energy efficiency or increase the number of usable square footage in a home. Other types of projects that add value include remodeling bathrooms and kitchens, adding rooms, and replacing doors and windows. Some homeowners even choose to build a pool or put in a hot tub to boost their curb appeal and enhance their property’s amenities.
The home improvement industry has benefited from rock-bottom interest rates and a desire to live in a comfortable, updated space. In addition, the flu pandemic spurred many homeowners to upgrade their homes to improve livability, make safety enhancements or simply update their landscapes. According to the Joint Center for Housing Studies of Harvard University (JCHS), the total value of home improvement expenditures peaked in 2022 and will begin to decline in 2024.
One factor that could contribute to the dip in new projects is a labor shortage and price spikes on materials. These factors led to a steeper cost for many home improvement items that were once affordable, such as lumber and paint. As a result, fewer people did projects that required significant labor or professional contractors.
Despite the recent slowdown in home improvement, most homeowners are still undertaking upgrades. In fact, the JCHS report found that the satisfaction rate for homeowners after completing a home improvement project remains high. Homeowners reported that they enjoy spending more time at home, feel proud of their accomplishments and are happier with their homes after the projects were completed.
As the economy continues to recover, some experts believe that home improvement spending will continue to rise. Others, however, are more cautious about the industry’s future and say that the market might be reaching its peak for home improvements.
When it comes to the best home improvement projects, it is important to keep in mind that not all projects add value to a house. In order to get the highest return on your investment, it is important to choose projects that will appeal to most buyers. It is also a good idea to speak with a real estate agent before starting any major projects to ensure that they are appropriate for the area and your home’s price range.