The Home Improvement Industry is Booming

Home improvement is an industry that encompasses the sale of building materials, appliances and decor as well as contractors and tradespeople who help consumers build, renovate or upgrade their homes. This market reached exceptional growth during the COVID-19 pandemic and is expected to continue growing until 2023.

Home repair and improvement projects are a fact of life for homeowners. Whether it’s a burst pipe, a clogged drain or a roof leak that can’t be ignored, these projects often pop up when you least expect them and cost more than originally estimated. According to a recent NerdWallet survey, however, most homeowners say they’re more likely to stick with their home improvement budgets than in previous years.

Despite the unsettling economic environment, consumers remain confident in the long-term value of their homes and are spending more on home improvements. The categories that are surging the most include work outside the house — with a tripling of landscaper spending and a threefold increase in decks. Another area with high growth is energy-saving upgrades, including new windows, heat pumps and insulation.

Depending on the state, some material costs of home improvements are tax-exempt. In New York, for example, the contractor must file a document with the Department of Taxation and Finance stating that the project qualifies as a capital improvement in order to be exempt from labor taxes. In any case, homeowners should always check a contractor’s license and insurance before hiring them to perform a job.

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