The Home Improvement Industry is Booming
The home improvement industry has seen robust growth in recent years. As consumers focused on renovations during the COVID-19 pandemic, remodeling firms saw a boom in business and homeowners found satisfaction in making their living spaces better. According to the Contractor Growth Network, sparkling bathroom overhauls and kitchen remodels are the most popular home improvement projects. While these projects have great ROI value, it’s important to consider your own comfort and the amount of money you’ll receive when it comes time to sell before embarking on a large home improvement project.
“If you’re looking for a good return on your investment, it makes sense to do some research first,” says Bera Daigle, CFP and member of CNBC’s Advisor Council. But if you’re planning on staying in your house for the long haul, it may be worth investing in a home improvement project that will increase your quality of life instead. For example, a front-yard upgrade can make a dramatic impact on the way guests perceive your home, and it’s an easy DIY weekend project. Try a cheerful new door color, adding planters and installing an eye-catching welcome mat.
A home improvement is any change to the interior or exterior of a building, such as repairing, improving, altering, restoring, converting, moving, demolishing, or adding to a residential structure. The term also refers to work done on the grounds of a dwelling, such as landscaping or fence construction. The home improvement industry includes retailers that sell building materials, supplies, and equipment, as well as contractors and tradespeople who perform renovation or home improvement projects.
Although there’s a sizable gray market of unlicensed contractors, reputable home improvement companies are insured and licensed and follow industry best practices, such as verifying their insurance and checking references before hiring. Whether you need help with a small DIY project or a full-scale home improvement, you can find the right professional through a search engine or a home service aggregator.
Many of the surging categories cited by Anderson have to do with work on the outside of the house, with deck construction up more than threefold and fence construction up almost 144%. These projects reflect an increased focus on the outdoor living space as well as a growing interest in gardening and yard work.
Despite the fact that there is a risk of declining housing demand in 2023, the home improvement industry should continue to see steady revenue growth through at least the next few years. However, as the economy recovers and mortgage refinance activity dwindles, home improvement spending will likely slow. For now, it’s a smart idea to focus on improvements that will add immediate value and enjoyment to your home.