Home improvement is a vast industry that encompasses the sale of building materials, appliances, decor, and services such as construction, remodeling, repairs, and maintenance. The sector has seen excellent growth results in recent years, even during the pandemic.
The American Housing Survey, which is conducted every two years, asks homeowners to self-report what they’ve spent on home improvement projects over the past two years. The survey does not break down projects by the scale, scope, or quality of work done. However, it does provide a useful snapshot of trends in home improvements and renovations.
According to the survey, nearly three-fourths of those who have undertaken home improvement projects in the past two years say they were easily able to pay for them without tapping into savings or incurring debt. The majority of these homeowners paid for the projects with cash from savings, but some used credit cards, money borrowed from friends or family, mortgage refinancing, contractor arranged financing or other sources.
Despite the fact that many Americans were spending more time at home because of social distancing due to the pandemic, the survey found that they weren’t motivated to renovate solely by the need to stay safe. They cited other reasons, including the satisfaction of seeing their homes improved and the desire to upgrade worn-out surfaces, finishes, and materials.
Although many of the projects surging in popularity are largely cosmetic in nature, there’s also been an increase in outdoor work such as deck construction and fence installation. These improvements can add value to a property, but it’s important to consider the style of these additions in relation to the surrounding neighborhood.