Home improvement is an industry that encompasses the sale of building materials, appliances and decor, as well as the work performed by contractors and tradespeople to improve homes. It has seen robust growth results in recent years, especially during the COVID-19 pandemic, when many people were confined to their homes and decided to renovate and upgrade. However, some projects will have a negative impact on resale value, so it’s important to choose carefully.
According to the 2021 American Housing Survey, homeowners spent $624 billion on home improvements over the two-year period. That’s a doubling in just a few years, which is impressive given the current state of the economy. Anderson says that rock-bottom interest rates, and the fact that people want to feel more at home in unsettling times, are helping to fuel this boom.
The most popular home improvement projects included deck construction, putting up fences and painting rooms. The number of people hiring landscapers, installing siding and constructing sheds also rose dramatically. However, there were notable drops in the number of people installing swimming pools, replacing carpet and adding a primary bedroom suite.
As the housing market continues to recover, it’s important for consumers to understand what types of improvements will add the most value to their homes. To help them make smart decisions, the National Association of Realtors has released an online guide to remodeling trends and best practices for home owners. The guide includes tips on selecting the right contractor, creating a budget and understanding how much equity a homeowner should expect to build in a renovation project.
Regardless of what projects a homeowner plans, they should keep in mind that the most successful upgrades are those that appeal to the broadest range of potential buyers. For example, a home recording studio might be the perfect addition for an experienced musician, but it would probably be out of the question for a family with young children.
When planning to renovate, it’s also helpful to talk with a real estate agent to see what other houses in the neighborhood are selling for. In some cases, homeowners make the mistake of improving their houses far above what other homes in the area are selling for, which can actually lower a house’s resale value.
Before you start any home improvement projects, make sure to research lenders. By pre-qualifying with multiple lenders, you can compare loan offers without affecting your credit score. You can also gather the necessary documents ahead of time, which can speed up the process once you’re ready to apply. Getting the financing you need for your next project will help ensure that your upgrades are an investment, not an expensive mistake. Whether you’re renovating your living room, kitchen or bathroom, the right mortgage can help you get the job done. To learn more, visit our article on Home Improvement.