Home improvement can be a great way to enhance your home’s value, increase your living space or make it safer for family members and guests. However, you should always consider your reasons for making a renovation. Renovating solely to make your house more attractive to potential buyers may be a mistake if it means you spend money on projects that do not add long-term value to your property. You should also be careful not to outpace your neighborhood by renovating your home with features that are too expensive compared to others in the area.
Homeowners have developed a renewed interest in home improvements. In fact, according to a new report from the Joint Center for Housing Studies of Harvard University, the amount spent on home improvement and repair projects reached $4,838, on average, in 2021. The most popular project was a kitchen renovation, followed by installing a security system.
The report’s authors note that the increased spending on home improvements likely stemmed from homeowners trying to make their houses more appealing and comfortable during the COVID-19 pandemic. In addition, rock-bottom mortgage rates made homeownership an attractive investment. However, the report predicts that the slowdown in household moves will likely lead to a decline in home improvement spending.
During the survey period, DIY projects comprised 20% of the total amount spent on home improvements. This figure is higher than in previous years, and the authors attribute it to the popularity of home shows like Fixer Upper and This Old House.
However, when choosing a contractor for your next project, it is important to be sure you are hiring someone licensed and insured. Many reputable contractors will have a license number displayed on their business cards and website, while some will belong to a professional organization that provides consumer protections for customers. Homeowners should check out a contractor’s reputation and customer reviews before making a decision.
Aside from boosting your home’s appearance, a good home improvement can improve energy efficiency, which is another selling point for potential buyers. Installing a heat pump, a water heater or insulation can decrease your home’s utility bills and save you money in the long run.
It is essential to plan ahead for your next home improvement project. This will help you find the right contractors and make wise choices that add value to your property and improve your quality of life. Remember to always stay within your budget and avoid going into debt for any renovations.
As the housing market continues to struggle, it is more important than ever to keep your goals for your home in mind when deciding on what renovations are worth the investment. A real estate professional can help you determine what high-impact upgrades will boost your property’s resale value. You can also work with a contractor to create a list of low-cost home improvements that will add both value and function to your home.