Home improvement is a common term that means anything that makes your house better, from adding on a room to replacing fixtures. You can also consider improving the efficiency of your home, like by installing new windows or a heat pump. This can save you money on utility bills and make your house more attractive to potential buyers if you ever decide to sell.
The home-improvement industry has been booming since World War II, when government mortgage insurance programs encouraged homeownership and highway construction promoted suburban growth. The popularity of television shows and a growing middle class fueled demand for home improvements and made renovations affordable for many homeowners.
In 2020, more than 3 in 5 homeowners took on home improvement projects, according to a NerdWallet survey. Those projects ranged from fixing or building a deck or patio to adding a bathroom, kitchen or bedroom. The reason for the surge? Pandemic-related social distancing allowed more time at home.
But don’t jump into a home improvement project with blind optimism. Not all improvements add value to your home or will even recoup their costs when you sell. To get the most return on your investment, think about how you will use the space and what renovations would appeal to a broad range of buyers. If you aren’t sure, consult a real estate agent about what improvements are likely to pay off when it comes time to sell. And remember, going into debt is never a good idea for any type of home improvement.
