The Home Improvement Industry is Expected to Grow in 2024

Home improvement

Home improvement is an industry that encompasses the sale of building materials, appliances, and decor, as well as the contractors, craftspeople, and other workers who perform renovation or upgrade projects. In recent years, the home improvement sector has experienced strong growth results and is expected to continue to grow in 2024.

The most popular project among homeowners is upgrading their kitchen, followed by a bathroom and then a bedroom. However, some projects can decrease a home’s value and increase its cost. To avoid this, homeowners should only do projects that are highly desired by prospective buyers or will make their homes more functional.

Moreover, it’s important to research how much certain improvements will return on investment before taking on any of them. For instance, a backyard pool is not a good idea for anyone who wants to sell their home in the future. Similarly, homeowners should always check a contractor’s license and insurance before hiring them to work on their house. Additionally, homeowners should look into whether the contractor is a member of a professional organization or has been accredited by an established body.

Some projects, like replacing a roof or fixing electrical problems, cannot be put off and are necessary to protect the safety of family members and the property. Others, such as renovating a kitchen or bathroom, are a great way to increase the overall functionality of the home and improve the resale value of the property.

According to a Houzz report, new home buyers spent an average of $30,000 on their first renovations, which is more than double the current national median. Short-term homeowners, those who entered their homes one to five years ago, saw similar increases in home improvement spending, with an average of $19,000. Long-term homeowners, those who entered their homes six or more years ago, saw much lower increases, bringing their spending more in line with the national median of $15,000 per household.

When asked why they are thinking about undertaking a home improvement project, 1 in 5 homeowners say it’s to make their home more attractive to potential buyers. However, 54% of surveyed homeowners say they want to feel more satisfied with their homes and 33% mention that their houses need updates to be safe or functional.

Despite the COVID-19 pandemic, homeowners are still looking for ways to improve their homes. The most common reasons include making the house more comfortable for family members, adding more features and improving livability, and increasing energy efficiency. Moreover, 69% of surveyed homeowners report feeling satisfied when they see their finished home improvement project. Nevertheless, many homeowners are concerned about the effect of the current economic climate on home improvement projects and may be reluctant to spend money on them. In addition, rock-bottom interest rates can make spending on home improvement projects an attractive option for consumers.