Home improvement, also known as home renovation or remodeling is the process of improving the interior and exterior of a home, including kitchens, bathrooms, bedrooms, basements, and attics. The home improvement industry is a large and diversified business that consists of contractors, subcontractors, suppliers, and manufacturers. Homeowners carry out home improvements for a variety of reasons, such as increasing comfort, adding functionality, and improving property value.
According to a recent study by Houzz and The Home Study, homeowner’s median spending on a single home improvement project increased 20% in 2022 over the previous year. However, JCHS predicts that revenues for the industry may have peaked in 2022 and will begin to decline this year. The reasons behind this trend include stalled housing sales and mortgage refinancing, rising labor costs, and supply chain issues.
Despite the slowdown, many consumers remain committed to their home projects. A full 36% of homeowners plan to work on a home improvement this year, and millennials are the most active segment.
Unlike their older counterparts, younger homeowners are more likely to use the internet for inspiration as they undertake home improvement projects. In fact, 40% of homeowners say they’d start a project by doing an online search for information and resources. Homeowners should take care to hire reputable contractors for their home improvement projects. Make sure to get multiple quotes and review the contractor’s references. On a larger project, it is important to establish an initial down payment and a payment schedule. Also, make sure the contract includes all of the specifics pertaining to your project. For example, the type and brand of materials used should be spelled out clearly.