The Home Improvement Industry

Home improvement is a huge industry, and it includes the sales of building materials, appliances, decor, and other improvements. It also encompasses the services of contractors and other workers who help homeowners complete DIY or professional renovation projects. This category of industry has seen excellent growth results in recent years, especially during the COVID-19 pandemic.

Homeowners are looking for ways to get more bang for their remodeling buck. They’re increasingly interested in adding rooms or making kitchens and bathrooms more functional. These upgrades are often expensive, but they’re a smart investment because they add value to the home. However, it’s important to keep in mind that some renovations may not yield a high return on investment.

A homeowner can get a tax deduction for the cost of certain improvements if they add to the overall value of their home or prolong its useful life. However, it’s best to consult a tax professional before undertaking any major home improvement project in order to understand what qualifies as a tax-deductible expense.

Many homeowners use a combination of cash from savings and other sources to fund their home improvements. According to a September NerdWallet survey, 80% of respondents say they typically stick to the budget they set for projects and avoid going into debt or overspending. However, for more costly projects, such as a basement remodel or kitchen overhaul, financing is usually required. In such cases, options for funding include cash-out refinancing, home equity loans, and contractor arranged financing.

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