The Home Improvement Market is Expected to Decline in 2024

Home improvement

Home improvement encompasses the sale of building materials, appliances, decor, and other home enhancements as well as services such as construction, repairs, and installation. During the COVID-19 pandemic, this industry reached excellent growth results as consumers redirected their discretionary spending toward renovations and DIY projects. The home improvement market is expected to decline in 2024, though, as housing market issues and rising labor costs may cause homeowners to delay renovation projects.

According to the 2021 American Housing Survey, a majority of surveyed homeowners reported making home improvements within the previous two years. These improvements include repairing and replacing existing items, such as fixtures or flooring; adding new rooms or amenities, such as patios or pools; and upgrading or renovating kitchens, baths, and basements.

The most common motivations for these improvements are to increase enjoyment with their homes (29%) and make them more livable (24%). In addition, 17% of respondents were motivated by a desire to improve home resale value.

It’s important to understand the potential return on investment in a home improvement project before starting. Choosing an affordable project that will add value to your home is one way to ensure the highest possible ROI. However, it’s also important not to overspend on a project and put yourself at risk of debt. Paying for a home improvement project with credit cards or loans can add up quickly, and you’ll end up paying for your upgrades for a long time to come. If you’re unsure of which home improvement projects will have the best return on investment, consider inviting a realtor or interior designer to your house for a consultation. They typically charge an hourly fee and can give you plenty of ideas for affordable changes that will enhance your living space.