Home improvement refers to the remodeling, altering, repairing, painting, or improving of residential or non-com- mercial property, such as installing fixtures, appliances, carpeting and other flooring, wall-to-wall coverings, landscaping, pools, patios, fences, porches and garages. Home improvements may also include the conversion of commercial property for use as a dwelling.

Amid the COVID-19 pandemic and its attendant lockdowns, DIY projects soared as homeowners spent their free time working from home. But the frenzied improvement spending appears to be cooling off. The leading indicator of remodeling activity, known as the LIRA, is projected to fall by 7% this year.

Nevertheless, American homeowners continued to invest in their homes in 2021. The Census Bureau’s American Housing Survey indicated that they undertook 135 million home improvement projects and spent $624 billion.

That’s nearly double what they spent during the previous two-year period. The increase is partly due to the heightened cost of labor and materials, but it’s also a reflection of homeowners wanting to improve their living spaces for work, entertainment, exercise and more.

However, before you decide to go all out on renovations, consider the potential resale value of your home. For example, upgrading your bathroom with a fancy marble floor may not appeal to future buyers, especially if it’s out of line with your neighborhood. A general rule of thumb is that you shouldn’t make changes that exceed the average for your area. It’s also a good idea to consult with a real estate agent before you invest in any major upgrades to ensure they’ll pay off come sale time.