Home improvement is the process of repairing, renovating, or making additions to one’s home. This industry is a huge part of the economy and has experienced excellent growth results in recent years. The market encompasses the sale of building materials, decor items, appliances, and other home enhancement products, as well as services offered by contractors and tradespeople to install and repair such improvements. The home improvement industry is expected to continue its strong growth into 2023.
According to the National Association of Realtors, during the COVID-19 pandemic, many homeowners upgraded their homes and found great satisfaction in doing so. In fact, the NAR reported that 83% of surveyed homeowners cited satisfaction with their upgrades, and most enjoyed spending time in their improved homes. The increase in renovations was not necessarily a result of the pandemic, however. The NAR reports that the majority of surveyed homeowners were already planning to renovate before the pandemic. The reasons given for such remodeling included replacing worn-out surfaces, finishes, and materials; adding features and improving livability; and simply wanting a change.
During the pandemic, a lot of homeowners rushed to complete home improvement projects so that they would be ready when it came time to put their homes on the market. This surge in activity caused home improvement revenues to spike. However, in 2023, these revenues are expected to decline due to stalled housing market activity and soaring labor costs.
With the slowdown of home buying, homeowners will likely focus on making repairs and renovations that are more budget-friendly. Experts say that they will also be looking to make updates that improve energy efficiency and curb appeal.
Homeowners should consider the ROI (return on investment) of their renovation projects before starting them. The higher the ROI, the better chance that they will recoup their investment at the time of a home sale. Some projects, such as sparkling bathroom overhauls and basement remodels, tend to offer the best returns.
Another important consideration for home owners is safety when completing DIY home improvement projects. Whenever possible, it is a good idea to enlist the help of a professional, especially when working with electrical or plumbing work. A licensed contractor will have the necessary training and skills to ensure that all work is up to code and safe.
Inflation is currently high, and consumers are often cash-strapped, so they may be less interested in big-ticket renovations that don’t necessarily deliver a high return. But that doesn’t mean that they won’t be doing any remodeling this year. In fact, experts believe that the biggest home improvement trend of 2023 will be small improvements that have a big impact. For example, replacing outdated light fixtures with new ones can give a room a fresh look without the expense and hassle of a full-scale renovation. Other affordable, high-impact improvements include painting and landscaping. These can make a world of difference in a home’s appearance and overall value.