Home improvement isn’t just a DIY hobby; it can add value to your house and make you feel more satisfied living in it. However, not all projects have the same return on investment (ROI), and some may even hurt your resale value.
According to the latest American Housing Survey, homeowners spent about 135 million dollars on home improvements in the past two years. But the coronavirus pandemic and volatile market conditions could affect how much people spend on upgrades in the future.
In the past, homeowners often took on home renovations to upgrade outdated features and increase livability. Those reasons still apply in the current economy, and the satisfaction gained by completing a project can also boost happiness with a home.
The categories where spending is surging the most are work that takes place outside the house, such as landscaping and building decks or fences. Those types of projects are often less expensive than kitchen or bathroom remodels, and they tend to pay off quickly, as well. Anderson says that rock-bottom interest rates have made some types of home improvements more attractive in the past year.
But if you want to get the most bang for your buck, keep in mind that some projects have a very low ROI, including that expensive water feature and koi pond in your backyard. Also, any addition that’s too personalized for the average buyer, or doesn’t fit the style of the neighborhood, could detract from your resale value. And if you’re borrowing money to complete a home improvement project, remember that you don’t own the improvements until you pay them back.