Big money being spent on renos
On average, households across ten major centres spent more than $11,000 on renovations in 2006
Canada News Wire
Approximately 1.5 million households in 10 major Canadian centres surveyed indicated they completed renovations last year, costing an average of more than $11,000, according to the new Renovation and Home Purchase Survey released today by Canada Mortgage and Housing Corporation (CMHC).
“More than $17.3 billion was spent on renovations last year across the 10 major centres surveyed,” said Bob Dugan, Chief Economist at CMHC. “As well, 46% of homeowners in these 10 centres surveyed indicated that they intend to spend $1,000 or more on renovations this year.”
The new Renovation and Home Purchase Survey is part of CMHC’s suite of enhanced surveys and analytical reports. The Renovation and Home Purchase Survey reports on actual renovation expenditures made in the previous year, as well as intentions to buy or renovate in 2007 in 10 major centres across Canada. The new survey enables all market participants to benefit from timely information on renovation market trends.
Close to half (47%) of households reported that the cost of renovations was in line with what they had budgeted. More than a third of households went over their planned budget for the renovation. Twenty-four per cent of households that undertook a renovation project were do-it-yourselfers who hired a contractor for a portion of the work. Slightly more households contracted out the renovation work (40% of respondents) as opposed to doing the work themselves (34%).
The main reason given by households for renovating in 2006 was to update, add value or to prepare to sell the residence (61%). Thirty per cent of respondents stated that the main reason for renovating was that their home needed repairs. The top three renovations completed last year were: remodelling of rooms (34%), painting or wallpapering (32%), and hard surface flooring and wall-to-wall carpeting (32%).
The share of households who spent $1,000 or more on renovations in 2006 was the largest in St. John’s at 37%, followed by Halifax at 36%, while a smaller proportion of households in Vancouver (30%) undertook renovations last year.
As for renovation intentions across the 10 major centres in 2007, they are strongest in Edmonton and Winnipeg where 51% and 50% of consumers, respectively, indicated they planned to undertake renovations costing $1,000 or more this year. The share of potential renovators is lowest in Toronto and Vancouver with 43% of households in each centre intending to renovate.
On the real estate purchasing front, eight per cent of households across the 10 major centres surveyed intend to purchase a home in 2007 that will be used as a primary residence. About half of the households that stated they intend to purchase a home in 2007 are first-time buyers, compared to 40% in 2006. The majority of first-time buyers are between the ages of 25 and 34, with a household income between $80,000 to about $100,000.
Home buying intentions are strongest in Calgary where 14% of households reported that they are considering buying a home this year. Purchase intentions are also strong in Edmonton where 11% of
households plan to buy, while the share is lowest in Montréal and Québec (6%).
As Canada’s national housing agency, Canada Mortgage and Housing Corporation (CMHC) draws on over 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes - homes that will continue to create vibrant and healthy communities and cities across the country.
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