Home improvement is a huge industry in the United States. It consists of the sale of building materials and home furnishings, as well as the service and labor involved in renovations, repair, and improvements to homes. Home improvement also refers to the act of improving something in one’s home, such as painting or rearranging furniture.
The industry experienced tremendous growth during the COVID-19 pandemic, as homeowners invested in making their homes better suited for remote work and entertainment. This trend is expected to continue, though revenues are predicted to dip in 2024.
Some types of home improvements provide a higher return on investment (ROI) than others. In general, projects that increase functionality and add square footage are the best investments. Examples include upgrading the kitchen, finishing a basement and adding bedrooms and bathrooms. On the other hand, luxury upgrades and anything that is outside of the norm for a neighborhood will not add value.
It’s important to consider what you want your home to look like before starting any home improvement project. If you plan to sell in the future, it’s wise to stay consistent with the rest of your neighborhood. For example, if your neighbors all have above-ground pools, adding one to your property isn’t likely to appeal to buyers. It’s also a good idea to hire an inspector before beginning any major renovations. They can identify problems that you might not be able to see and suggest solutions.