Home improvement, or renovation of a residence, is a common part of owning a home. Homeowners may choose to renovate for several reasons, including upgrading worn-out surfaces, materials and finishes or simply adding space and features to make the home more comfortable. Depending on the project, homeowners can hire professional contractors or do the work themselves. Many homeowners find satisfaction in seeing their completed projects and may feel they are a good return on investment, according to a recent study.
The Home Improvement Industry
Spending on residential home improvements peaked in 2022 and is expected to decrease slightly in 2024, but the industry still represents a substantial opportunity for investors. Experts attribute the renewed interest in remodeling to a combination of factors, including higher housing prices that leave homeowners with available equity for loans, rock-bottom interest rates and aging baby boomers who are financially equipped to carry out their own home improvement projects.
The most popular projects are kitchen and bathroom upgrades. In fact, according to the National Association of Realtors (NAR), these are the top two most important projects for increasing a home’s value and livability. Changing out appliances, sinks and fixtures is easy and relatively inexpensive, and can dramatically improve the look of a room. Homeowners should be careful not to go overboard with trendy styles, however, as this could hurt a property’s resale value.
Similarly, new windows and insulation are an effective way to cut energy costs and add to the home’s overall value. These projects are especially attractive to buyers because they are low-cost and have a high return on investment.
Other popular projects include building decks and fences and landscaping the yard. The number of people hiring landscapers jumped more than 238% and the number of homeowners building decks increased by 275%. Anderson says this increase is a result of homeowners trying to create outdoor living spaces where they can enjoy the great outdoors and entertain friends and family.
While improving the appearance of a home will boost its resale value, it is equally important to make sure any renovations address safety concerns and are in line with neighborhood standards. Homeowners should also consider the amount of time they plan to remain in a home before making any major improvements. If they are planning to sell, they should try to anticipate what potential buyers might want and avoid any renovations that will not appeal to a broad audience.
Aside from these considerations, the primary reason to remodel a house should always be to improve the quality of life for its current residents. The most successful and satisfying renovations are those that will enhance the comfort of a family or allow them to better enjoy their home’s unique features. For example, adding a bedroom or bathroom to accommodate children’s needs is an excellent home improvement project that will likely appeal to prospective buyers. Other ideas include converting an unused garage into a playroom or adding a patio for entertaining.