Home improvement is a popular topic of conversation among homeowners, as evidenced by the popularity of TV shows such as Fixer Upper and This Old House. However, it’s one thing to watch those shows and quite another to take on the project yourself. Whether you’re looking to add curb appeal with a new front porch or spruce up your kitchen with stainless steel appliances, there are many things you can do to increase the value of your home. But what are the best projects to undertake? And how do you know which ones will be worth the investment?
The latest research on home renovations reveals some interesting trends. According to a recent report from the Joint Center for Housing Studies of Harvard University (JCHS), homeowners’ spending on home improvement projects has increased rapidly over the past three years. In fact, JCHS estimates that homeowners spent $328 billion on improvements in 2020 and $472 billion in 2022.
This year, the most popular projects have to do with exterior work. There’s been a triple increase in the number of people building decks, and the number of people putting up fences has skyrocketed as well. The reason for this increase, according to a recent report from the National Association of Realtors (NAR), is that homeowners are renovating for the purpose of adding space and enhancing livability.
Interestingly, though, NAR’s survey revealed that the coronavirus pandemic was not the main driver of this surge in home improvement activity. Instead, it was a combination of factors, including rising consumer confidence, rock-bottom interest rates, and the feeling that it’s a good time to make improvements because of the price advantage over other investments.
When choosing a renovation to undertake, it’s important to keep in mind your personal priorities and the long-term impact of the project. For example, installing a pool may be fun, but it is unlikely to add much resale value. However, adding a second-story addition to your home could be an excellent way to improve the living conditions for your family and provide extra space.
Aside from a comparative market analysis prepared by a real estate agent, the following are three major projects that are likely to increase your home’s resale value. Of course, it is important to discuss your plans with a licensed home inspector and real estate agent before beginning any work on your property. In addition, you should update your home insurance policy as you complete your renovations. The increased value of your home may mean that your old policy is no longer adequate to protect your investment. Talk to a home insurance pro about your options. This is especially true if you’re doing substantial renovations. For example, you may need a separate flood or earthquake policy.