Home improvement is a business that encompasses the sale of building materials, appliances, decor, and services provided by contractors, tradespeople, and workers who help make improvements, repairs, and modifications to homes. This industry grew rapidly during the COVID-19 pandemic, but will likely see a slowdown in 2023 due to rising prices and a possible recession.
The categories that have seen the most growth since the pandemic began are outside-focused ones: deck construction, hiring landscapers, and putting up fences have all surged more than 300%. This is because Americans have been spending money to upgrade their outdoor living spaces, making their homes more functional and attractive as they prepare for a post-pandemic world.
While major upgrades like replacing a bathtub with a shower have been pulled back, the nation’s largest home improvement retailers say homeowners are still looking to spend on lower-cost projects that can be done by themselves. Home Depot and Lowe’s said this week that they are seeing fewer customers in their stores, but those who are there have a higher appetite for items that can be used as DIY fixes.
It’s important to consider the goals and budget for any home improvement project before beginning it. A financial adviser can assist in this process by helping weigh the benefits of a particular upgrade against its cost and return on investment. Also, it is important to consider the impact of any changes on resale value before committing to them. For example, adding marble flooring to your bathroom may not pay off when you go to sell your home because buyers will expect the same in other homes on the market.