Most Canadians are staying in their existing homes and renovating as political and economic uncertainties weigh on sentiment.
A first-ever survey on Canada’s nationwide renovations activity shows that just 9% of respondents say they are planning to sell their home in the next 12 months.
The HomeStars poll found that renovation spending is soaring with nearly two-thirds of all respondents planning to spend as much or more on improving their homes in the next 12 months, as they did in the past year.
Despite having the lowest disposable income, Canadian millennials are the generation expecting to spend the most on renos over the coming 12 months.
Alberta was the province with the highest percentage of renovations over $50,000 but this may be attributed to the devastating fire in Fort McMurray which resulted in a boost to renovations and repairs on homes in that area, with many projects still underway this year.
Other key findings
Some other key findings included:
Canadians were doing both renovations and repairs in the last year:
- Renovations: 57% of homeowners did one or two major renovations, with 26% spending between $5,000 and $20,000, and 8% spending more than $20,000 in the last year.
- Repairs: 57% of homeowners completed one to two smaller repairs during the last year, with 36% completing between three and 10 repairs. 23% of homeowners spent $2,000 - $5,000, 24% spent $5,000 - $20,000 and only 5% spent more than $20,000 on their home repairs last year.
- 77% of all homeowners reported they had the cash on hand to fund their last major home improvement project. Of the remaining 23% who had to finance, Millennials are the generation most likely to finance any home project using their credit cards.
- Looking forward, 64% of all respondents said they may consider renovating their home in the next year.
Among Canadian homeowners, bathrooms were the number one major home renovation project planned in the next 12 months at 24%, followed by kitchens at 20%.
More market update: