Home improvement is a huge industry that encompasses the sale of materials and the services provided by contractors, architects, designers, tradespeople and others who work to improve or upgrade homes. This market has seen great growth results in recent years. Some of this is likely due to the COVID-19 pandemic, which may have shifted consumer focus from travel to more local activities.
The types of projects that are surging the most right now have to do with work outside the home, including landscaping and fence construction. These categories are up almost threefold year-over-year.
Many homeowners undertake home improvements with the hope of adding value to their property. They think that a state-of-the-art kitchen or a basement remodel will boost resale value, or that buyers will be able to see the extra space and consider it worth paying more for their home.
Unfortunately, that’s not always the case. Some renovations actually detract from resale value, because they turn off potential buyers.
When it comes to making upgrades, a good rule of thumb is to keep them in line with your neighborhood. Adding a hot tub to your backyard will make it look out of place when most of your neighbors have modest pools. Similarly, installing a high-end granite vanity in your master bathroom might be luxurious, but it’ll also turn off many buyers.