Canadians set to renovate homes in droves, but spending less: CIBC
More Canadians will fix up their homes this year, with a majority of homeowners in Ontario and B.C. planning to stay put after the renovations, according to a new CIBC poll.
The survey, released Tuesday, revealed that amid a growing amount of household debt and soaring home prices, 48 per cent of homeowners across the country plan to repair their homes this year, up from 37 per cent the year before. But on average, those surveyed said they would spend $11,800 on renovations compared with $13,000 the previous year.
Homeowners in Ontario and British Columbia – where the country’s hottest housing markets are located – plan to spend the most, with respondents in B.C. expecting to shell out the highest amount ($13,200).
Almost half of Greater Toronto Area homeowners plan to renovate in next 12 months, with nearly 60 per cent of those renovating saying they will stay in their homes. In the Greater Vancouver Area, almost 40 per cent will renovate in the next year. Of those Vancouverites planning to renovate, 62 per cent say they won’t sell their home to buy a new one once it’s fixed up.
The survey also found homeowners’ primary reason for renovating was to address ‘wear and tear.’ Just 12 per cent said they were doing it to increase the value of their homes. Over two-thirds of homeowners across the country said they would use cash or savings to fund their renovations, with a quarter planning to take out a line of credit, loan, or put the cost of the project on their credit card.
“These findings show that the decision to either renovate or relocate comes down to your financial situation, emotional attachment to your home, and ultimate real estate goals,” Scott McGillivray, a real estate investor, contractor and television personality said in a release. “While moving into a new home can help address your need for space, a renovation can often help achieve the same goal, while keeping you in your neighbourhood and, if done right, adding value to your home.”
Fewer baby boomers (36 per cent) plan to renovate than younger Canadians, but they will spend nearly twice as much. Boomers were also more likely to cite “increasing the value of their home to sell” as a primary purpose for undertaking the project.
But home renovations rarely come without stress.
The survey found those planning to renovate were most worried about project delays, disruption, and overspending. Scott Wambolt, senior vice president of retail and business banking at CIBC, said having a thorough budget can keep the repairs on track.
“Renovations can be stressful, but having a detailed budget can help minimize the disruption and keep your project on track,” Wambolt said in a release. “Be clear about the goals and limits of your project as well as the costs before you head over to the hardware store or pick up your toolbox. While DIY can add up to some cost savings, it could end up costing you more if you don’t know what you’re doing.”