Inflation has taken a bite out of the home improvement market. While the value of a house may rise by a few hundred dollars, materials costs for home improvement projects can be more than four times higher than they were before the pandemic. The cost of upgrading a kitchen with marble flooring may be unaffordable to potential homebuyers. However, if a homeowner can make it affordable to complete a project, it can add real value to the home.
One of the most popular home improvement trends is landscaping. This can include adding new features such as a deck or a patio. However, it can also mean improving the appearance of the existing landscaping. To add to the beauty of the area, a homeowner could retouch worn areas or change out fixtures.
A recent survey by Minneapolis-based marketing firm Axiom asked consumers about their home improvement plans for the year ahead. More than half (58 percent) of homeowners indicated that they plan to engage in at least one project in the next year. Of these, 64 percent said that their project will cost more than $1,000.
While the home improvement market is expected to increase in the coming years, inflation will continue to take its toll. According to the Harvard Joint Center for Housing Studies, the rate of growth will slow down. Meanwhile, a number of new players have entered the market. These companies compete on pricing and premiumization.
The DIY home improvement market has an expansive product selection. It also has a large presence of physical stores. As such, marketing to the industry is often challenging. Some of the best marketing tactics involve aggregators, which bundle a variety of home improvement services into one package.
There are a variety of ways to improve the value of a home. Home improvements can range from the small to the major. For example, a new front door can add a lot of curb appeal. If a house doesn’t have a garage, buyers might want to have one built. Likewise, a backyard paradise won’t add much to the value of a house.
Despite these issues, a growing percentage of homeowners plan to upgrade their homes in the next few years. In fact, the Axiom survey found that more than 90 percent of those surveyed said they were planning to spend more time on a home improvement project in 2021 than they did in 2017. Among this group, 22 percent of older adults and 37 percent of younger adults deemed themselves DIY experts.
Another study by Houzz & Home reports that the average home renovation cost will jump by about twenty percent between 2020 and 2022. That is the highest spending number recorded since Angi began tracking the industry seven years ago.
Although there’s been a lot of hype about the do-it-yourself (DIY) movement, the best way to start a project is by researching and hiring the right professionals. Most home owners will hire a contractor to do the work. Make sure to check that the contractor is licensed to do the work. Also, ensure that the company has insurance and references.