Home improvement is the repair, alteration, conversion, modernization, or improvement of the interior or exterior of a building or structure. This includes the addition of any new building, as well as the rebuilding or restoration of existing buildings or structures.
Many people do home improvement projects for a variety of reasons. Some projects are simply for the enjoyment of the homeowner, while others may be a necessity due to safety or functional concerns. Some projects are also undertaken to increase the resale value of a property, which can lead to a substantial return on investment when it comes time to sell.
For the most part, homeowners are aware of the potential returns on their investment when undertaking a home improvement project. However, some homeowners can become overly optimistic about the resale value of their home and overspend on upgrades that do not necessarily add value. For example, adding high-end finishes to a home can make it more expensive to maintain and may not appeal to all buyers. Conversely, upgrading to energy efficient appliances and windows can save on utility bills and may be a selling point for buyers looking to reduce their carbon footprint.
In 20th century America, the emergence of home improvement television programs and magazines such as This Old House fueled Americans’ love of renovating their homes. Home improvement became a leisure activity with men taking the lead using traditional male tools—saws, hammers, screwdrivers, wrenches—that reinforced masculinity and helped them escape from family obligations and stress. The rise of the home improvement industry also created jobs for tradespeople and other contractors, as well as opportunities for women to work in the home by performing routine maintenance and small projects themselves.
A successful home improvement project requires careful planning, research, and budgeting. For larger, more complex projects, a professional contractor is often necessary to ensure the work is done correctly and on time. To find the right contractor for a job, homeowners should do their research and compare prices, credentials, and references before hiring. Some homeowners even use online aggregators to help narrow down their search.
The National Association of Realtors (NAR) reports that renovations spiked during the pandemic, but this was not due to fear of retaliation by neighbors or fears of disease. Instead, most people reported wanting to upgrade their homes for personal reasons—such as updating worn-out surfaces, finishes and materials (38%), increasing their enjoyment of the home (29%), or enhancing its livability (20%).
It is important to remember that not all home improvement projects are worth the expense. It is a good idea to speak with a real estate agent in your area about which improvements will add the most value to your home and which ones may be better left for future owners. Then, it is a matter of choosing the best financing option for your particular situation. This could include a personal loan, credit cards, a home equity line of credit, or refinancing your mortgage.