Whether you’re remodeling your home for the first time or you’ve been doing it for years, there are a few things you should know about the home improvement industry. From contractors to landscapers to the latest gadgets and gizmos, there are plenty of opportunities to spruce up your home.
The home improvement industry is worth an estimated $440 billion annually, according to the National Home Improvement Contractors Association (NICIA). The industry is growing 4% each year, with Millennials leading the charge. These young homeowners are spending billions on home improvement projects.
NICIA’s research indicates that home improvement projects are more popular among consumers than they’ve been in years. According to the NICIA, homeowners will spend an average of $41,432 this year, up from $37,974 in 2016. The NICIA surveyed homeowners about their plans for home improvement projects in 2021. It found that a large percentage of homeowners – 72% – plan to complete a home improvement project in the next year. Moreover, many respondents are planning to have more than one project done.
The home improvement industry offers many niche services, such as painting, roofing, flooring, electrical and plumbing services, and HVAC systems. These services are often aimed at niche markets and offer affordable options for homeowners who aren’t in the market for traditional home improvement services.
Home improvement projects also take advantage of rock-bottom interest rates. Rather than pay expensive monthly mortgage payments, homeowners can borrow up to 85% of their home’s value. While the home improvement industry is growing, it is also being harmed by inflation and rising mortgage rates. It’s important to know which services are most important to you, and to do your homework.
Home improvement projects are also considered capital improvements in most states. This means that homeowners are required to file a capital improvement form with the Department of Taxation and Finance. Also, records of capital improvements must be kept for at least three years. They can be obtained by completing Form ST-124, Certificate of Capital Improvement.
The Home Improvement Contract Law requires that home improvement projects be carried out in a timely manner. To ensure that the work is done in a timely fashion, homeowners should work with a licensed contractor. Additionally, they should make sure that the contractor is insured. They should also check that the contractor has a license and permits from the county or municipality where the work is being done. A contractor who is found to be in violation of this law may be fined $250-$2,500.
A few other things to consider: It’s a good idea to hire a contractor that has references from previous customers. It’s also a good idea to ask your friends and neighbors for their opinions. Ask about their experience and find out what they liked and disliked about their experience with the contractor.
In addition to the usual suspects, there are also unlicensed companies that have become big business. Some of these unlicensed companies are accredited by professional organizations. Others are members of reputable associations.