The home improvement industry is a multibillion-dollar market that includes the sale of building materials, appliances, decor, and services provided by contractors and tradespeople. It also includes home renovations and do-it-yourself projects. The industry has reached excellent growth results in recent years and is expected to continue growing in 2023.
The definition of home improvement varies by state, but it generally refers to the construction, repair, replacement, remodeling, alteration, conversion, rehabilitation, modernization, or addition to any residential land or building with four (4) or more dwelling units. It excludes, however, the construction, erection, or replacement of driveways, swimming pools, patios, garages, basements, fallout shelters, and improvements to outdoor structures such as fences. In some states, the term also includes awnings, fences, or communication systems.
Homeowners have a lot to consider when it comes to home improvement, including costs and return on investment. Many homeowners take on DIY projects, such as fixing a leaky faucet or painting the living room, but some projects are too big for them to handle on their own and require the assistance of a professional.
When choosing a contractor to work on your project, it is important to consider their licenses and business references. It is also recommended to check whether a company has insurance and is an accredited member of a professional organization. You should also ask for a copy of the contract and ensure that it contains the terms and conditions, including warranties, for both the material and workmanship.
In the last two years, more than 77 million homeowners took on home improvement projects, according to the latest Improving America’s Housing report from the U.S. Department of Housing and Urban Development. This represents a significant increase over the previous two-year period when only 22 million homeowners reported having taken on home improvement projects.
One of the reasons for the increased interest in home renovations during the pandemic is that people spent more time at home and sought ways to enhance their entertainment and working spaces. The satisfaction that comes with completing a project is also a motivating factor for many homeowners, as noted by NAR’s 2020 Remodeling Impact Report.
Despite the increased interest in home renovations during the COVID-19 pandemic, not all projects are worth the investment. While some will boost a home’s resale value, others will actually cost more than they’ll return in sales price. Learn which renovations will pay off and which ones to avoid, so you can make the right decision for your home. Also, remember that even small changes can have an effect on resale price. So, it’s best to plan and budget carefully. Lastly, don’t be afraid to ask for advice from family and friends before tackling a home project. After all, your home is an investment and a major part of your life. It’s worth taking the time to do it right.