Home improvement is any repair, upgrade or addition to the interior or exterior of a dwelling. It includes projects such as painting, coating or sealing a structure, changing or replacing flooring and landscaping work that improves the yard. It also includes installing or repairing air conditioning systems, heaters, ventilators and other equipment or improving water supplies to plumbing fixtures or appliances.
It’s a good idea to do a little home improvement every now and then to keep your house feeling like new. However, many homeowners don’t have the funds to revamp their whole house all at once. Instead, try to pick one project each year that can make a big impact without breaking the bank. This could be as simple as changing all the door handles or repainting your front door, or it could be a bigger renovation like remodeling a bathroom or adding an extension to your home.
While it’s great to upgrade your house, you should always keep safety in mind. Some home improvement projects can be dangerous, especially if you aren’t qualified to do them. Always hire a professional for any dangerous or complicated tasks. When selecting a contractor, check their license and insurance coverage, ask for references and read reviews before hiring them. Also, consider using an aggregator that provides homeowners with multiple contractors to choose from.
The COVID-19 pandemic drove a boom in home improvements in 2022, but it wasn’t the sole reason. In fact, the National Association of Realtors (NAR) found that most homeowners planned on renovating their homes regardless of the pandemic. The NAR’s 2022 Remodeling Impact Report indicated that 83% of surveyed homeowners reported that they wanted to update their homes for reasons like upgrading worn surfaces and finishes (30%), improving the livability of their home (26%), or wanting a change (16%).
During the surge in home improvement in 2022, households spent nearly $567 billion on a variety of home improvement projects. Most of that spending was done by middle-income homeowners doing moderately priced projects they were able to do on their own.
However, the NAR’s recent reports suggest that consumers have pushed pause on their tub-to-shower conversion plans as they adjust to the “new normal.” It seems likely that rising prices are behind this shift.
Whether you are looking to renovate your home or just want to freshen it up, there are many ways to do it on a budget. Start by setting aside some money for the project and only spend what you can afford. If you are going to take out a loan, consider getting a home equity line of credit (HELOC) or second mortgage that comes with a fixed rate and a set repayment period. This will allow you to keep your cash in reserve for other needs and protect your home from market fluctuations. However, you should be careful to avoid overextending yourself, as it can negatively affect your home’s value. It’s important to have a clear vision of what you want your finished project to look like before taking out a loan.