The year 2017 marks the fifth consecutive year that home remodeling spending has risen since the previous year. As the US continues to climb out of the recession that began with the housing market crash in 2008, home value are rising steadily and fewer houses are on the market as owners hang onto properties because of their growing equity. Since it’s a seller’s market, homeowners are choosing to remodel their existing homes rather than trying to buy, hence the increase in home improvement spending this year.
Because home values are up and the amount of equity the average American has is up, more people are choosing to borrow against that equity in the form of a home equity line of credit (HELOC). They’re using this credit line to invest in upgrades to their home in the form of various home improvement projects that will in turn add further value to their homes.
Kitchen and bathroom remodels remain popular as they always have from year to year. Master bedroom and laundry room remodels are trending this year.
Projects that are yielding the highest return on investment (ROI) are front door replacements, new insulation for the attic, garage door installations, minor kitchen upgrades, and backyard decks. A noticeable trend in 2017 is the preference for smaller-scale DIY projects as opposed to full-scale remodels.
Projects with smaller up-front costs tend to produce a better ROI. Some examples of simple DIY projects that add to home value include minor landscaping, upgraded light fixtures, tiled backsplashes, re-facing kitchen cabinets, and baseboard radiator cover installation.
Best time to remodel is now
Home improvement spending is projected to continue rising for at least a few more years. As long as the housing market remains in its current form, home improvement projects that add to the home value are going to be especially sound investments.