Home improvement is an industry that encompasses the sale of building materials, appliances, decor, and other accessories as well as contractors and tradespeople who install, repair, or improve homes. Its revenues peaked in 2022, but JCHS predicts that the market will begin declining in 2024 as consumers delay projects or opt for less expensive alternatives.
Many home improvement projects are considered more of a need than a want, such as adding an extra bedroom or bathroom to accommodate a growing family. These projects often provide a good return on investment and can increase the value of a home. On the other hand, some improvements can decrease a home’s resale value. For example, installing a swimming pool in the backyard may detract from the appeal of your home to potential buyers.
A good way to avoid decreasing your home’s resale value is by carefully choosing the types of renovations you undertake. Stick with upgrades that are consistent with the style of your house and that will appeal to the broadest range of prospective buyers. Also, be sure to consider how the project will affect your neighborhood. If everyone in the area has a hot tub in their backyard, yours might look out of place and reduce your property’s curb appeal.
It is important to choose a trustworthy contractor for any home improvement work. Check with your local licensing agency to ensure that the person you are considering has a current license and insurance coverage. It is also a good idea to read online reviews about the contractor before hiring them for any work. Never pay a contractor in full upfront; always make incremental payments until the project is completed and you are satisfied with the results.