Home improvement is an industry that encompasses the sale of building materials, appliances, decorations, and services provided by contractors and other workers who make upgrades or renovations to residential properties. It includes the remodeling of kitchens, bathrooms, and bedrooms, among others; adding decks and porches; putting in new flooring or paint; and other improvements.
Historically, annual growth in home improvement spending averaged about 5%. But the sector has been struggling recently because of higher interest rates, stagnant inflation and a national housing market slump that’s weighed on consumer confidence.
Before you start a home improvement project, think about the value that it will add to your house and consider any additional costs, like materials or contractor fees. You also should decide which projects are essential and which are just nice-to-haves. For example, if your roof is leaking or your electrical wiring is outdated and dangerous, those repairs should be top of mind. But upgrading your living room with a wood-burning fireplace probably isn’t necessary.
If you’re planning to hire a contractor for your project, research them and request references or certifications. You may also want to ask for an estimate before hiring them. Also, be sure to factor in any ancillary costs like a hotel stay or meals at restaurants during the work period if you’re unable to live at your home during the renovations. Lastly, you should consider using savings or taking out a personal loan to pay for the home renovations, if necessary. These loans typically have lower interest rates than credit cards and offer flexible repayment terms with no use restrictions.