According to a recent report by Houzz, home improvement spending is up 22%, with more homeowners looking to improve their current homes rather than sell. What’s the cause, and what should you do if you’re a homeowner ready to enhance your space?
The most popular rooms for home improvements
The best areas that give you the most return on home improvement investments include:
- Kitchens – Kitchens are one of the biggest selling points for a home, so it’s where many homeowners will focus on improving.
- Bathrooms – Can you ever have too many bathrooms? We’re not sure! More homeowners are investing in adding or expanding their bathrooms for future sales.
- Basements – Finished basements are popular because they add to your usable space without costing as much as an addition. It’s also incredibly easy to find basement financing options for improving or expanding the space, especially when compared to getting money, permits, and contractors to build an entirely new add-on to your home’s structure.
Why is home improvement spending up?
There are a few reasons why homeowners are spending more to spruce up their spaces:
- Inflation – The cost of materials and labor is rising due to inflation and supply chain issues, forcing homeowners to spend more, even on the most basic materials and tools.
- The housing market – We’re seeing a resurgence in interest in home improvement as the housing market continues to recover. People are looking to improve their homes as an investment, and it’s worth it to do things like update molding and paint.
- Recession-proofing – A well-maintained home is a safe investment in any market, and people are feeling more secure about their finances and looking to make upgrades that will help them live comfortably no matter what.
What should you do if you’re thinking about improving your home?
There are a few things that you can do before you make any significant investments:
- Ensure you can pay for it – Before starting any major home improvement project, talk to your lender about what kind of financing you might be eligible for. Personal loans and home improvement financing can be used to cover basement renovations, bathroom improvements, and any number of costs associated with improving your home. However, to get the most competitive offers, you should ensure your credit score is the highest and that you have a solid plan to pay for it.
- Get quotes – Getting multiple quotes from different contractors will help you get the best deal on your improvements. It’s also essential to find a reputable contractor with a good reputation in your community, as this will give you peace of mind that they’ll do a good job.
- Stay organized – Keeping a renovation or home improvement project on track requires careful planning and good organizing. Make sure to keep all your receipts, quotes, and other paperwork together to reference them if questions or disputes arise.
The bottom line
There are plenty of reasons to improve your space in preparation for a market recovery, and home improvement spending will only continue to increase. If you’re thinking of upgrading your home in the near future, be sure to talk to your lender, get multiple quotes from different contractors, and stay organized so that you can make the most cost-effective upgrades possible.