Home improvement, also called residential construction or housework, involves any renovation or addition to a residential building. These improvements may be minor, such as painting or fixing a light switch, or major, such as adding an extension or replacing the kitchen.
Home improvements are a big part of owning a home, but sometimes homeowners get a little carried away with the projects they undertake. If you have a tendency to overspend on your projects, it’s important to have the right information to help you make smart choices about what upgrades will add value to your home and how to finance them without going into debt.
Many people upgraded their homes during the pandemic, but that spike in home improvement wasn’t just due to heightened anxiety about staying safe at home during the epidemic. In fact, the National Association of Realtors (NAR) reports that prior to the pandemic, 83% of surveyed homeowners already had plans to renovate.
Even during the boom, however, many projects cost more than expected. That’s because of the labor shortage and price increase in materials like lumber. The result is that many homeowners have slowed or stopped their remodels, especially if they are using credit cards to pay for the work.
The good news is that there’s still pent-up demand for a lot of home improvement projects, explains NAR economist Peter Fisher. He predicts that many consumers will revisit their pricier plans later in 2024. Those consumers can take advantage of a new tool that allows them to compare the costs and return on investment of various home improvement projects.