Home improvement—from sprucing up the bathroom to adding a new deck—is one of the most popular pastimes for American homeowners. The television schedule is filled to the brim with shows like Fixer Upper and This Old House, but before you grab a sledgehammer, there are a few things you should consider. For example, not all improvements add value to your home and some renovations may even decrease its resale value.

The housing market is a volatile place, and some homeowners are concerned that their home renovation investments could suffer in the future. According to the Joint Center for Housing Studies of Harvard University (JCHS), home improvement spending peaked in 2022 and is expected to decline in 2024, as the industry faces challenges like stalled mortgage refinancing and rising labor costs.

However, the JCHS report also shows that homeowner satisfaction is high and that renovations boost homeowners’ enjoyment of their homes. Most planned projects aren’t focused on making homes more attractive to potential home buyers, with most respondents citing personal reasons like upgrading worn-out surfaces and finishes (54%) or simply wanting a change (69%).

Before you start any home improvements, make sure you have a well-defined budget in mind. It’s important to know what you can afford and to avoid racking up unmanageable debt that you could struggle to pay back later on. You should also always hire a licensed, insured contractor so you don’t run the risk of being held liable if a worker is injured or property damage occurs on your property.