Home improvement is the process of improving or upgrading the interior and exterior of a house. The term is used to encompass changes that improve a home’s function, safety and appearance as well as adding landscaping to the property. Home improvement projects can be done by homeowners as DIY (do-it-yourself) projects or by hiring a professional contractor. The most common home improvement projects include painting, bathroom remodeling, replacing floors and installing new appliances. Other popular projects include adding a patio, deck or fence; finishing a basement; and adding windows or doors.
Homeowners have developed a renewed interest in renovating their homes, according to recent industry reports. However, it’s important to understand that not all home improvements add value to a property or even allow homeowners to recoup their investment.
Generally, a home’s equity is the difference between its market value and the mortgage balance. Homeowners can increase a home’s equity by making a variety of renovations, such as repairing damage and refinishing wood surfaces. However, the amount of equity that a homeowner can expect to gain from any particular project will vary greatly depending on the type of work that is performed and the current state of the housing market.
In 2023, a majority of homeowners who undertook home improvement projects indicated that their primary reason for doing so was to “upgrade worn-out surfaces and finishes” (30%). Other reasons included preparing for a future sale (29%), making their homes more comfortable and livable (23%), and simply wanting a change (16%). Millennials were the group most likely to cite preparing for a future sale as their primary motivator for home improvement projects, while baby boomers were the least likely to do so.
Most homeowners financed their home improvements using cash from savings or proceeds from the sale of a previous residence, a personal loan or a line of credit. However, the use of credit cards for smaller projects increased in 2023, while a significant share of homeowners in this study reported using a line of credit to finance larger-budget home improvement projects.
Aside from the expense of the actual renovations, many homeowners also incur costs associated with the removal of construction debris and related cleanup services. These costs can add up quickly, and it is important to budget for them in advance.
It is also crucial to choose the right contractors for your projects. Researching contractors’ credentials and references is essential, as is ensuring that they are insured and licensed to perform the work that you require. You should always seek out a contractor who is a member of a trade association or accredited by a professional organization.
wikiHow’s Home Improvements Category offers step-by-step instructions and photos to help you make a wide range of repairs and upgrades to your home. Our articles cover everything from How to Cover a Phone Jack on the Wall to How to Measure a Room. You can also find articles on how to select and use the best tools for your home improvement projects, as well as how to save money on materials and labor costs.