Home improvement, or renovation of existing structures, is an important part of the housing industry. Home improvements can increase a home’s livability, as well as its market value. Home improvement projects often focus on making structural changes or updates to kitchens, bathrooms and bedrooms. However, other projects that can add value to a home include expanding living space, adding an outdoor room or upgrading a home’s energy efficiency.
Home renovation is a growing industry in the United States, with spending peaking in 2022 and expected to decline in 2023. In general, homeowners over the age of 55 are the largest group responsible for home improvement projects. Many homeowners are motivated to undertake home renovations by the need to update worn-out surfaces, improve a home’s livability or make aesthetic improvements.
Some home improvement projects are essential to ensure the safety and functionality of a house, such as replacing old flooring or fixing electrical problems. Putting off these types of repairs can lead to expensive issues down the road. Likewise, some home improvements are purely cosmetic and don’t require a significant financial investment. For example, a fresh coat of paint on the exterior or interior can brighten a dull-looking home and create a new impression for potential homebuyers.
Other reasons to renovate include increasing a home’s energy efficiency by installing solar panels or replacing outdated heating and cooling systems. Such projects can significantly reduce a household’s utility bills. In addition, projects that improve a home’s curb appeal can have a positive impact on its value.
A growing interest in DIY and popular television shows have also contributed to the expansion of the home improvement industry. For example, the show Bob Vila’s This Old House inspired viewers to re-create Victorian era features in their modern suburban homes. Manufacturers responded to this demand by offering cheap imitation molding, columns and other elements to help homeowners “historicize” their homes without the expense of actual Victorian-era materials.
While some home improvement projects can have a high return on investment, it is crucial to weigh the pros and cons of each project. Renovating solely based on resale value could mean sacrificing your own comfort and enjoyment of the house or overspending on luxury fixtures that a prospective buyer might not appreciate.
It is also vital to choose a trusted contractor for any renovation work. Homeowners should check a contractor’s license, insurance and business references before hiring them to work on their home. In addition, Maryland law requires that all contracts for home improvement services be in writing and signed by both the consumer and contractor before any work begins or money is paid. It is recommended that consumers look for contractors who belong to a reputable trade organization and/or have a local Better Business Bureau (BBB) rating. It is also a good idea to avoid any contractors that do not have their name, address and MHIC license number preprinted on the contract.