The Home Improvement Industry
Home improvement is a huge industry that includes the sales of building materials and appliances as well as contracting services for renovations, repairs, and improvements. It has reached excellent growth results in recent years, especially during the COVID-19 pandemic.
Homeowners often make upgrades that will improve their lives, such as adding an extra bathroom or installing a deck for outdoor entertaining. But they also renovate to increase their homes’ value or to fix problems. The best way to do this is to plan ahead, understand the cost of different projects and choose a contractor with whom you feel comfortable.
For most homeowners, improving their homes is a big part of homeownership and is an important reason for buying a property in the first place. However, it is essential to keep in mind that a home improvement project’s cost should not exceed the market value of the property, as this will put off potential buyers. Moreover, any cost overruns may also require additional financing, which will lead to additional costs and delay completion of the work.
According to the American Housing Survey, most of the home improvement projects completed by homeowners were paid for with cash from savings. The remainder was financed with sources like cash-out refinancing, home equity loans, credit cards, and contractor arranged financing.
Unfortunately, most remodels and renovations don’t offer much return on investment. Moreover, many homeowners don’t even come close to recouping the full cost of their project.