Home improvement projects are no longer limited to the kitchen. They include garages, driveways, fences, wall-to-wall carpeting, fire protection devices, and other interior and exterior improvements.
The American Housing Survey, a government-run survey released every two years, found that homeowners spent a total of more than $500 billion on home improvements in the last decade. Among the most common home improvements are the addition of a bathroom, painting a room, and remodeling the kitchen.
Another study, from NerdWallet, found that most homeowners expect to spend $7,746 on home improvements in the next two years. This is the biggest increase in home improvement spending in seven years.
According to the same survey, there are three key factors that affect the home improvement industry. First, inflation. Secondly, there is competition for consumers’ dollars. Third, there are new players bringing their own brands to the table.
In the past two years, Americans have completed over 135 million home improvement projects, averaging $4,838 per project. Of these, 53 million were DIY.
Almost nine in ten (87%) of those who completed a home improvement project were able to pay for it with cash. However, 12% took on debt and had to cut discretionary spending to make the project happen.
As the housing market continues to tighten, it’s more important than ever to choose wisely when you are planning a remodel or home upgrade. It’s also a good idea to make sure you’re getting the best deal by negotiating with your contractor.