Home improvement is the activity of improving the interior and exterior of a house or building. It is a multibillion dollar industry. Many homeowners enjoy taking on DIY (do-it-yourself) projects such as painting, re-grouting tile, and power washing the outside of their home. Other homeowners hire professional contractors to complete large scale renovations and remodels, such as adding a swimming pool or kitchen expansion.
According to the Joint Center for Housing Studies of Harvard University, from 2019 to 2021 American homeowners undertook some 135 million home improvement projects. This was an increase of over half a trillion dollars in spending from the previous reporting period. Homeowners are expected to continue their spending on home improvement projects through 2024.
A variety of factors influence the success of home improvement projects. These include the quality of materials and workmanship, a project’s ability to fit into the existing structure, and the effect a project will have on a home’s resale value. A well-designed and executed home improvement project can add beauty, comfort, convenience, and value to a property.
However, a poorly designed and executed home improvement project can detract from a property’s value, reduce its marketability, and even damage a homeowner’s credit. A homeowner should always consider these issues when undertaking a home improvement project and should only invest money in improvements that will pay off in the long run.
Homeowners should also be aware of the impact a particular home improvement project will have on their tax bill. This is especially important for those who itemize their federal and state income taxes. Homeowners should consult with their accountant or tax attorney before beginning any home improvement project to ensure they are aware of the financial implications associated with a specific improvement.
Lastly, when making home improvement investments, it is important for homeowners to understand the return on investment (ROI) that can be expected from different types of projects. Choosing the right project is key to getting the most out of your investment.
Homeowners should be sure to compare prices when selecting materials for their home improvement projects. It is important to find high quality materials at a reasonable price. Choosing expensive materials will not help you increase your resale value if it is not in line with the surrounding neighborhood. Likewise, converting a garage into living space will not improve your resale value if most homes in the area have garages. Instead, choose upgrades that will appeal to the majority of buyers and will not exceed your budget.