Home improvement is a broad term that refers to any renovation or modification to a home. It can include anything from painting and cleaning to fixing problems or making structural changes. Home improvements can increase a home’s value and make it more attractive to buyers. It can also help improve the quality of life for the homeowner.
According to NerdWallet, nearly all homeowners are considering a home improvement project in the next two years. Some are thinking about minor projects, such as painting or updating light fixtures, while others are looking at more substantial remodels or additions. For example, 32% of respondents say they’re considering converting their garage into an additional living space.
When it comes to the reasons why people decide to do home improvements, most cite needs and wants. The NerdWallet survey found that 54% of homeowners who are planning to do some kind of home improvement say they’re doing it to make their homes more comfortable for themselves and their families. Other popular reasons include wanting to upgrade worn-out surfaces, finishes and materials, adding features and improving livability and functionality, and making the home look more attractive.
The most common home improvement projects are kitchen and bathroom updates, followed by adding a deck or patio, adding a fence, installing new flooring and adding a shed or other outdoor structure. Those projects are often more affordable than major additions or complete remodels, and they can add significant value to the home. However, it’s important to remember that not all upgrades have the same resale value. For example, if you install marble countertops in your master bath, you might not get back the full cost of that investment when it’s time to sell. It’s best to focus on upgrades that will appeal to a wide range of buyers.
It’s not surprising that people are putting a brake on some of their big-ticket home improvement plans. Retailers like Lowe’s and Home Depot are reporting a pullback in sales, with customers focusing on lower-cost DIY fixes instead of major kitchen or bathroom remodeling. Rising prices appear to be the main reason for the shift.
While many Americans are still planning to do some type of home improvement in the near future, the overall pace has slowed from the peak in 2022. Experts expect that revenue from home improvement projects will continue to decline in 2024. This is mainly due to the ongoing labor shortage and supply chain issues. Many homeowners are also concerned about the impact of increasing interest rates on their monthly mortgage payments.