Home improvement is a favorite pastime of many homeowners. TV shows like Fixer Upper and This Old House are popular, and homeowners have access to plenty of do-it-yourself projects that can improve their homes without a lot of money.
But how do you know what improvements add value to your home? Which renovations are worth the expense, and which should you avoid at all costs? In this article, we’ll explore some of the latest data on the most common home improvements, how to measure ROI and tips for choosing smart projects that will boost your home’s value.
In the wake of the pandemic lockdown, the housing market was flush with buyers and home improvement projects surged in popularity. But, as the market cooled down and people returned to their normal routines, that renewed focus on improving homes began to fade. The last quarter of 2022 saw a steep decline in spending on home improvements, according to the Joint Center for Housing Studies of Harvard University (JCHS). JCHS expects that trend to continue into 2024, with revenue expected to drop.
When it comes to a return on investment, or ROI, most home improvement projects aren’t worth the cost. In fact, the average home improvement project doesn’t even return half of what it costs to make. And, that’s if you choose the right type of renovation to do in the first place. For example, adding a primary suite (that’s a bedroom with a private bathroom and walk-in closet) is one of the best ways to increase your home’s value but it can be expensive to do.