Home improvement is a process of updating your home to make it more comfortable or functional. It can be done by yourself or with the help of a professional. Adding an outdoor kitchen, upgrading your bathroom or installing hardwood floors can increase the value of your house. However, it’s important to plan ahead for the costs of home improvements so you don’t overspend or go into debt.

In the years leading up to the coronavirus pandemic, Americans spent about half a trillion dollars on home improvement projects, according to data from the Census Bureau and NerdWallet. The vast majority of those homeowners were remodeling rooms inside their homes. But the pandemic’s social distancing and labor shortages also drove up prices on everything from paint to wood, requiring more people to spend time at home and forcing them to undertake larger and more ambitious projects.

The trend may be cooling, but it hasn’t stopped people from making changes to their living spaces. In fact, a recent NerdWallet survey found that nearly all homeowners are considering at least one home improvement project within the next two years. The most common upgrades are painting and updating light fixtures. But more than half are thinking about re-doing their kitchens or bathrooms.

While rock-bottom interest rates have made it easier to finance home improvements, many homeowners are still watching their finances closely. That’s why most homeowners (79%) financed their home improvement projects with cash in the latest Census Bureau survey period, compared to just 16% who used credit cards or other forms of debt.