Home improvement is booming, and for good reason. With housing prices high and mortgage rates more than double what they were last year, fewer people are buying homes and instead choosing to fix up the ones they have. And that means there are more renovations on the horizon than ever before.
One of the categories surging the most this year is work that makes a house more energy-efficient, according to Anderson. This includes projects such as replacing insulation, adding weather stripping, and upgrading heating systems. He says the surge is likely due to two things: homeowners want to save money on utility bills, and also because of the current high inflation and rock-bottom interest rates that make such projects more affordable.
Other home improvements that are expected to rise this year include landscaping, deck construction and fence installation. But that doesn’t mean you should just go nuts with the lawn mower and planting trees all over your property. “Some tree types detract from curb appeal and can be expensive to remove,” Anderson says. He recommends avoiding oak, female ginkgo biloba, sweet gum and locust trees, which can all be messy and expensive to trim and cut down.
It’s also a good idea to remember that home improvements don’t always add value to your home, or even increase the return you get on the investment. A lot depends on your neighborhood, what other houses are selling for in the area and the overall state of the housing market. And if you’re planning on eventually selling, it’s smart to avoid renovations that are overly costly or could put you way above the average price for your neighborhood.