Home improvement is a broad term that can refer to a wide variety of projects. Typically, it involves improving or renovating the interior and exterior of one’s house. This can include everything from a simple paint job to putting on a new roof. Some homeowners choose to tackle these projects themselves, while others hire a contractor or other professionals. Home improvement projects can be expensive, but the benefits can be significant.
The Home improvement industry includes the sale of construction materials, appliances, furniture and decor for interior and exterior home use. It also includes the installation of these items, as well as other services such as painting, drywall work, carpeting and roofing. The industry has reached excellent growth results in recent years, especially during the COVID-19 pandemic when it received a boost from consumers seeking to make their homes more comfortable and functional.
Aside from increasing the value of the property, home improvements can also help reduce energy costs. Many of these improvements can be relatively inexpensive and easy to do. Homeowners can add insulation to their attics and replace their old, drafty windows with more efficient models. Other common upgrades include replacing kitchen or bathroom faucets and fixtures, laying new tile in the shower or updating light fixtures.
Depending on the scope of the project, some homeowners may seek out financing for their home improvement needs. These loans can be structured as either secured or unsecured. Secured loans are tied to the home’s equity, while unsecured loans are based on the borrower’s credit history. It’s important for homeowners to understand the terms of their loan before proceeding with a project.
According to the NerdWallet survey, almost half of homeowners are planning to undertake home improvement projects over the next two years. While many are considering small projects like painting or updating light fixtures, some are thinking bigger, such as adding an additional bedroom or bathroom. A few are even considering a major renovation like remodeling their entire kitchen or renovating the kitchen and adding an addition to their home.
While most homeowners prefer to pay for their home improvement projects with cash, there are some who need help. During the last home improvement boom, 14% of homeowners who took on big-ticket projects reported having to sell items or tap into savings. Another 12% used debt to finance their projects, while 8% borrowed against their home equity.
With the housing market in a state of flux, it’s not surprising that household renovation plans have cooled. However, retailers like Lowe’s and Home Depot still see customers who are interested in tackling smaller, less costly projects that are do-it-yourself friendly. This might be a sign that homeowners are deferring their larger renovation plans but aren’t ready to abandon them entirely. With the economy growing and prices rising, homeowners are looking for ways to stretch their dollar when it comes to home improvement. Luckily, the right tools and knowledge can keep renovations affordable and on track.