Trends in Home Improvement

Home improvement

Home improvement has a long history of helping homeowners make the most of their living spaces. As the economy slows, however, homeowners are deferring, not ditching, their more ambitious home renovation projects, according to recent industry reports. This article will explore trends in home improvement, including popular projects, reasons for the rise and fall in popularity of these projects, and what kind of return on investment homeowners can expect to get from their efforts.

According to a 2022 study by LightStream, home improvement is still a top priority for homeowners. In fact, 73% of those surveyed plan to invest in one or more projects. The report also found that these homeowners were largely focusing on projects designed to improve their homes’ comfort and functionality rather than to attract potential homebuyers.

As such, it’s not surprising to learn that these upgrades are more likely to have a positive impact on homeowner satisfaction than on the bottom line. In addition, rock-bottom interest rates have made many types of projects more affordable for homeowners. The categories that are surging the most, according to the survey, include painting, landscaping and fence construction.

While the COVID-19 pandemic certainly fueled the spike in home improvements, it was not the sole cause. In fact, the NAR’s 2022 Remodeling Impact Report reported that most of those surveyed had planned to renovate their homes well before the pandemic hit. Some of the most popular motivations included upgrading worn surfaces, finishes and materials; increasing enjoyment with their homes; and adding features to enhance livability.

In terms of the returns on their investments, homeowners can expect to recoup anywhere from 100 percent to as little as 20 percent, depending on the type of project and its costs. Typically, kitchen and bath remodels have the best chance of generating an ROI, but there are exceptions to that rule.

The highest returns usually come from the more universal projects, such as installing quality appliances and flooring that appeal to a wide range of prospective buyers. Conversely, a kitchen renovation that features a unique design, such as a built-in hot tub or an expensive fountain, might not be appealing to the average buyer and could actually detract from the value of your home.

Another thing to consider is that your neighborhood’s overall value may be a determining factor in what sort of return you can expect on your home improvements. If you install too many high-end upgrades, it may not be in keeping with the neighborhood and could detract from your property’s resale value.

If you’re planning on making any major changes to your home, it’s a good idea to consult with a real estate professional. They can provide valuable insights into how to maximize your return on a renovation project and help you select projects that will have the greatest impact on your home’s value. And of course, it’s always a good idea to pay cash, so you don’t end up with thousands of dollars in debt that you won’t be able to afford to pay off.