Home improvement is the renovation of homes and includes work to upgrade or repair elements of the home such as rooms, baths, kitchens, roofs and exteriors. This industry also involves the sale of building materials and decorations, as well as the services of contractors and tradespeople. The market has reached impressive growth results in recent years, especially during the COVID-19 pandemic when consumers focused on improving their living spaces.

However, homeowners say inflation and a possible recession will factor into how much they take on moving forward. About two-thirds of renovation projects during the census survey period were financed with cash, and 14% had to reduce discretionary spending or sell items to afford their home improvements. A smaller percentage had to tap into or exhaust their emergency savings and still others borrowed against their home equity. In terms of the projects that were undertaken, the most popular included adding a deck or patio, remodeling a bathroom and replacing appliances.

Although major home improvement projects may be on hold due to inflation concerns, the industry should see continued consumer investments this year because many homeowners want to spend money on projects that add value and make their house more comfortable. Emmanuel Forge, a traveling contractor who posts home-renovation advice on TikTok and Instagram under the brand Remodel School, suggests consumers do their research before undertaking a project. It is important to find the right contractor and make sure the contract includes a description of the work, a payment schedule and as many specifics as possible about the types and brands of materials to be used.