The home improvement industry includes businesses that sell and install building materials, appliances, decor, and more. It also includes services such as contractors, repairpeople, and tradespeople. Home improvements can be large and expensive, or small and cheap, depending on the scope of a project. The industry has seen strong growth in recent years, particularly during the COVID-19 pandemic, when homeowners invested in their homes to make them more livable and adaptable for remote work and learning. However, the industry’s growth may slow this year, as high interest rates and stubbornly high inflation could curtail spending.

When considering a home improvement project, consider the return on investment and whether it will make your home more comfortable. Generally speaking, it’s best to invest in projects that increase your home’s livability and are likely to appeal to future buyers. Moreover, it’s important to consider your neighborhood, as buyers are likely to pay a premium only for homes that match or improve upon the quality of neighboring properties.

Unless you’re a multi-millionaire, paying for a home improvement project out of pocket isn’t realistic. As such, many homeowners use financing to pay for a renovation or addition. This might include a personal loan, an equity line of credit (HELOC), or a mortgage. Whichever route you choose, be sure to research the best options and secure a reasonable loan repayment schedule that fits into your budget. Alternatively, you can opt to save and then renovate your home as cash flows in.