Home improvement is a broad term that covers everything from minor renovations to major remodeling, alterations and repairs. In the past two years, American homeowners spent an estimated $624 billion on home improvements. This amount is a substantial increase over the previous decade and reflects growing economic and homeowner needs.
The number of projects that homeowners completed rose 44% from the previous year, according to the 2021 American Housing Survey. Moreover, the total amount of money spent increased 20% in that time period.
A significant portion of home improvement projects were paid for by cash. However, 20% of homeowners who took on these types of projects over the past two years had to make some sacrifices, including cutting back on discretionary spending or selling items. In addition, 14% of them had to tap into or exhaust emergency savings, and 12% of them borrowed against their home equity to cover the costs.
These projects often add to home value and give homeowners the opportunity to update their homes and make them more appealing to potential buyers. A home’s resale value is largely determined by its square footage, so adding more livable space can significantly increase the home’s worth.
One of the most common projects that homeowners take on is to remodel their kitchens and bathrooms. These updates can be expensive, but they also provide a big return on investment.
Another project that homeowners take on is to upgrade their homes’ energy efficiency. This type of home improvement can reduce energy bills and help homeowners save money in the long run.
Finally, many homeowners also take on home projects that are a bit more personal in nature. This could include replacing old and dated hardware in a bathroom or updating their cabinets with a more modern look and feel.
Homeowners are always looking for new ways to improve their homes, which is why the number of home improvement projects they complete is growing. These projects are also helping to keep home values up and ensure that homeowners continue to be able to afford their homes. In fact, a recent NerdWallet survey found that over 95% of American homeowners are considering taking on home improvement projects in the coming years.