Home improvement, also known as renovation, repair, or maintenance, is any activity that improves a home’s interior and exterior. This can include anything from painting and landscaping to installing a new roof and updating plumbing fixtures. Home improvements may also include building an addition or finishing a basement.
There are few certainties in life, but one of them is that if you’re a homeowner, home improvement projects will come looking for you — sometimes in the form of an urgent need like a leaking roof or rotting subfloor. When that happens, it’s usually difficult to know where to start. Fortunately, there are plenty of resources to help you get the project done right, and on budget.
In fact, according to Census Bureau data, homeowners completed 115 million projects in 2021, an increase of over $72 billion compared to the previous two-year period. That’s a huge number, but the most dramatic change is in how much people spend: In 2020, homeowners spent an average of $1,350 per project; in 2021, that rose to over $2,200 per project.
One reason for the jump was a shortage of labor and materials that drove up prices. But it also reflected a general sense of homeowner confidence and a willingness to invest in their houses. In September of this year, a NerdWallet survey found that about 3 in 5 Americans had undertaken at least one home improvement project since March 1, and the typical cost of those projects was $6,438, on average.
When it comes to home improvement, the best way to minimize costs is to do your homework ahead of time. Research which projects are likely to boost your home’s resale value and choose wisely among them. Aim for improvements that are consistent with the style of your house, and don’t go overboard. Adding an in-ground swimming pool to a ranch-style home, for example, will look out of place and probably lower your home’s resale price.
Another good idea is to compare loan options before you decide how to finance your project. There are unsecured loans specifically designed for home improvement, as well as mortgage-backed home equity lines of credit (HELOCs) and second mortgages. Pre-qualify with several lenders to compare estimated rates and terms. Some lenders also require certain documents in order to process an application, so gathering these upfront can save you time and hassle later on.
When it’s all said and done, your home is a significant investment. If you’re smart about the improvements you make, they can yield a high return in both living comfort and in savings on costly repairs down the road. Just remember to use caution and always follow the safety tips outlined above, and if in doubt, hire professionals. That’s especially true for work that requires skilled work like wiring, plumbing or cutting through walls. That’s the kind of work you shouldn’t try to do yourself unless you’re skilled and experienced with power tools and other equipment.