What Is Home Improvement?

Home improvement is any work that improves the function or appearance of a residential building. This includes renovations and remodeling projects that add square footage, as well as improvements to an existing building or structure. Examples of home improvements include adding a deck, updating an old kitchen or bathroom, installing new lighting fixtures or replacing the roof. It also includes interior decoration, painting and landscaping.

Home improvements can make your house more enjoyable to live in or more appealing to potential buyers if you decide to sell it. However, it’s important to choose wisely and focus on projects that will provide a good return on investment. A poorly chosen project could actually decrease your home’s value, rather than increase it.

The home improvement industry grew tremendously during the pandemic due to increased homeowner interest in DIY (do-it-yourself) home projects. TV shows such as Bob Vila and Trading Spaces helped to broaden the appeal of home improvement by showcasing how easy it is to remodel your own living spaces. The popularity of these shows shifted the cultural perception of home improvement from one typically done by males (such as carpentry work) to a more female activity, and even a family or group activity.

According to JCHS, a joint center for housing studies of Harvard University and the Federal Reserve Bank of Philadelphia, home renovation spending peaked in 2022 and is expected to decline slightly in 2024. Nonetheless, the overall growth of the home improvement industry remains steady.

Many home improvement projects are tax deductible, depending on how they’re structured and the amount you spend. For example, you can deduct the cost of certain repairs, such as a new roof or a furnace, as long as they’re made to maintain or improve your home. In addition, you can deduct a percentage of the costs of most energy-efficient home improvements.

Investing in home improvements can help you reduce your monthly energy costs, so it’s a good idea to keep up with them. If you have a lot of debt, it may be a better idea to pay off the debt before completing any major home improvement projects. You can use a home equity loan to finance your project, which allows you to borrow against the value of your home. However, this is a significant financial decision, and you should only use this type of financing if it’s necessary. Otherwise, you may be better off paying off your debt with cash or a personal loan. Taking on too much debt can cause problems, such as financial stress and possibly bankruptcy. If you’re unsure about your financial situation, talk to a credit counselor before making any decisions.