Home Improvement – Adding Value to Your Home

Home improvement is the act of improving or repairing the interior and exterior of a residential building. This includes kitchens, bathrooms, bedrooms, living rooms and more. Home improvements can also include landscaping, fencing and insulation installation. According to the National Association of Realtors (NAR), after completing one renovation project, 86% of homeowners feel inspired to continue making changes to their homes.

The home improvement industry is booming. In fact, homeowner remodeling and improvement expenditures grew by more than 20% during the 2021 survey period when compared to the previous year. Much of this growth is due to people wanting to make their homes more comfortable and functional for themselves. This may include adding a garage door, installing new flooring or replacing old light fixtures.

However, there are some homeowners who can’t afford to complete these projects without making sacrifices or going into debt. In fact, only about half of homeowners who took on home improvement projects during the 2021 survey period were able to do so without having to cut back on discretionary spending, selling items or tapping into savings.

Many homeowners rely on credit cards, personal loans and even home equity lines of credit to fund their home improvement projects. While some of these loans have lower interest rates than mortgages, they still come with monthly payments that need to be factored into any budgeting plan. The increase in loan options has also led to an increase in home equity lines of credit, which can be a good option for some.

Considering the current housing market and the increase in mortgage rates, it’s important for homeowners to carefully consider what they want to improve and how long they will be living in their homes before they decide to take on a renovation. If the home will be on the market, it’s best to focus on renovations that will add value and appeal to prospective buyers.

The return on investment (ROI) of home improvements can vary widely and is based on the type of project and its cost. In general, upgrades that improve a home’s energy efficiency will increase the homeowner’s bottom line by decreasing utility bills. Some of these projects, such as energy efficient windows and doors and new insulation, can also qualify for tax rebates or incentives.

Other high ROI projects that can add to a home’s value and appeal include things such as a new front entryway, patio or deck. These are projects that will be visible to the neighborhood and help set a property apart from others on the market. They may also be the reason why a buyer chooses a particular home over another in the same area.