Time spent indoors over the past year has sparked an increase in home improvement projects to make the stay-at-home experience more comfortable. With the continuing effect of the pandemic, this year appears to be on the same track.
Despite the economic slowdown caused by the pandemic, home renovation expenses rose 3% last year to $ 271 billion, according to a new report from the Joint Center for Housing Studies at Harvard University. This year, JCHS expects spending to reach $ 281 billion.
The planned increase in renovation spending comes amid easing foreclosure restrictions and growing signs of economic recovery. Owners benefit from savings one year of lockdown (and possibly money released by refinancing) to improve the comfort of their home.
“Many find themselves ready to adapt their homes to their new normal lifestyle,” said Nichole Straub, Managing Director of Discover Home Loans. “Many have reallocated their disposable income from travel and entertainment investments to home improvement projects.”
Fifty-eight percent of those surveyed by Find out about mortgage loans are planning renovation projects this year. Of these, 83% say making their home more comfortable is their main motivator.
Mischa Fischer, HomeAdvisor’s chief home improvement market economist, notes that 40% of homeowners the company polled cited making their home more suitable for their lifestyle as the main reason for embarking on a project. renovation, compared to 25% in 2019.
The mindset, says Fischer, has changed to “the house is not just this asset that I have, it’s actually this place that has to provide all of these services for me and therefore I’m ready. to spend to get a good value on this front too.
Choosing the right renovation project
Not all home improvement projects are created equal. According to David Haas, co-founder of PowerPay, a digital lending platform providing financing for home improvement, most home improvement projects will add value to your home. Don’t expect to get back all of your investment.
According to Haas, depending on the project, expect a return on investment of between 75% and 95%. Renovations like replacing your siding with vinyl have a 75% return on investment, according to Remodeling magazine. Cost compared to 2020 value report. In contrast, replacing a garage door provided a 95% return on investment.
According to Home Advisor’s Home expenses statement report, homeowners spent an average of about $ 13,000 on home improvement and maintenance projects last year.
The key to getting the most out of your investment, says Fischer, is finding the right balance between affordability and visual impact. Your return on investment “depends on what the buyer is willing to assess this change for.”
Niche decorations or unique design features may work for you, but may not be as appealing to a potential buyer, especially if that means they have to spend money on a renovation if they don’t like it. not. In other words, have a gothic themed house it’s fine if it’s you who live there, but may not make the best impression on house hunters.
Another element of any remodeling will be quality. Fisher recommends hiring a qualified professional to perform the renovation to ensure that you get the renovation you want in a timely manner. HomeAdvisor recommends reading reviews and asking for references. If you have friends or family who have done a similar remodeling project, ask about their experience with their contractor. Once you’ve narrowed your list down to a few potential candidates, check their licenses and ask to see recent examples of their work.
“With a good quality professional you get a project planner, a designer, someone who is honest, with integrity, that’s the number one thing,” says Fisher.
Best home improvement projects in 2021
The most popular home improvement trends for 2021 are projects that don’t have to cost a lot, but can have a big visual impact on a home’s look and feel.
Redo a bathroom is the most popular planned renovation project this year, according to a HomeAdvisor survey.
Let’s face it, we spend a lot of time in our bathrooms, so an upgrade that makes this important room more comfortable, efficient, and practical makes a lot of sense and can be a selling point for any potential buyer. Changing tastes will appear first in bathrooms and kitchens. Modern toilets, faucets and showerheads not only look good, they also save water and help lower the running costs of the home.
The cost of a bathroom remodel averaged $ 13,401 last year, according to HomeAdvisor’s True Cost report. You could easily spend a lot more, but a bathroom remodel will be more economical than, say, a kitchen remodel, which cost on average over $ 35,000.
It was last year’s most popular project and the second most planned project this year, according to HomeAdvisor. An interior painting project had an average cost of $ 2,007, a relatively inexpensive upgrade that can also have an eye-catching impact on a home.
If you plan to paint for the purpose of reselling your home, be careful about the colors you choose. The buyer should be able to imagine their furniture in your home, so it is best to look for neutral tones that can blend well with any style.
The same can be said of the exterior paint. If the exterior paint is faulty, a new paint can make your home stand out from the crowd in the neighborhood. Remember, if your paint upgrade is to sell your house, you might not want to paint it in your favorite baseball team’s color scheme.
Replacing your old flooring is the third most planned renovation project this year. It is relatively inexpensive, with an average cost of $ 4,680.
Replacing worn carpet, tile, or wood with new flooring will not only make your home more comfortable, but can also add an interesting design feature that can make your home more attractive when it comes time to sell it.
Consider recent flooring trends when replacing your old one to see what is not only more durable, but also what can improve the value of your home. According to Realtor.com, in 2019, homes with hardwood floors sold 2.5% more than homes with other types of flooring and provided a return on investment of between 70% and 80%.
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