Home improvement is any project or work that involves the remodeling or repair of a home, including interior and exterior painting, room additions, remodeling kitchens or bathrooms, installing new flooring, replacing windows and doors, and refinishing woodwork. Home improvements can also include landscaping or putting in a deck or patio.
According to the most recent American Housing Survey, homeowner-reported home improvement spending peaked in 2022 and began declining in 2024 as a result of ongoing housing market issues like stalled mortgage refinancing and rising labor costs. Despite this, many homeowners continue to plan multiple projects each year.
Keep in mind that the value of your home improvements can be tax deductible, so it’s important to keep detailed records of each project. For example, start a file for receipts and contracts and document your changes with before-and-after photos. You should also maintain a spreadsheet that shows the date, work description and cost for each item so you can easily add up your total expenses.
Also beware of fraudulent contractors that try to take advantage of you and your home renovation project. They may demand payment in a way that’s harder to trace, such as cash or prepaid cards. They may also claim they need to obtain a permit for your project, which is normally the responsibility of the homeowner.
Lastly, avoid attempting projects that have little or no real financial benefit, such as adding that water feature and koi pond you’ve always dreamed of. Such additions won’t necessarily make your house more valuable and could even deter potential buyers.