Home improvement is a multibillion-dollar industry. In the years leading up to the COVID-19 pandemic, the renovation market was fueled by ambition, stick-it-out-at-home DIYers, and a housing market where homes were selling like hotcakes. However, revenue for the industry is expected to drop in 2024 due to stalled home sales and higher labor costs, according to JCHS.
But even though major projects may be on hold, most homeowners want to improve their living spaces. A recent NerdWallet survey found that almost all homeowners are planning at least one home project in the next two years. And while many are eyeing simple, low-cost improvements such as painting or updating light fixtures, about a quarter are considering a more substantial renovation or addition to their home.
While major home projects are an excellent way to add value and comfort, it’s important to consider how long you plan to stay in your house before embarking on a large-scale remodel. In fact, a majority of homeowners who take on major renovations report having to make financial sacrifices or sell items to pay for them. Some even had to tap into or exhaust emergency savings, borrow against their home equity, or take out a credit card.
Another thing to consider is how a home improvement project will impact energy costs. For instance, installing new windows or a heat pump can help lower utility bills and save money over time. These types of projects also offer a good return on investment if you decide to sell your home in the future, since buyers will appreciate lower energy costs and will pay more for a house that’s more efficient.