Almost half of Canadian homeowners are planning some renovation work on their homes this year but their intentions are focused on repairs and maintenance.
Spending is set to be 7% lower in 2018 than last year, at an average $11,000, the lowest for 5 years according to the CIBC Home Renovations Poll.
"Canadians continue to see the value of investing in their homes, but they're taking a very practical approach by focusing on lower-cost projects this year," says Edward Penner, Executive Vice-President, CIBC Personal and Small Business Banking.
Regionally, the curbs in renovation spending vary with those in Ontario still planning to spend $13,600 – although that’s down from $16,000 in 2017 – and BC homeowners have cut more than $3,000 from their budget with an average spend of $9,900.
Homeowners in Alberta have the lowest spending intention at $8,100 although this is up from $7,400 last year. Those in Quebec ($9,900) and Atlantic Canada ($9,500) are also spending slightly more this year.
Basic maintenance (52%); landscaping (39%); and bathroom renovations (39%) top the priorities for renovation spending in 2018.
Cash or savings (59%) is the top way to fund projects with 29% opting to use a loan, line of credit, or credit card.
Renovations are a good investment
Most respondents (86%) said that believe any renovation is an investment in the value of their home.
Most (71% cent) Canadian homeowners aged 55+ would prefer to stay put and renovate their current home than sell it and move elsewhere. Boomers plan to spend about $10,800 on average, down 36% from $16,800 last year, to address wear and tear primarily.
More market update: