Growing numbers of Canadians choose to renovate but will also spend less, as both home prices and debt soar, finds CIBC survey
With many homeowners unable to afford to move, but household debt levels at record highs, it’s no wonder that more and more Canadians are turning to renovation to meet their home needs – but are spending less money doing so.
That’s according to the findings of a new CIBC survey, which states that almost half (48%) of Canadian homeowners are planning on making some form of improvement to their homes this year. This is up considerably from 36% in 2016.
There seems to be a direct correlation between renovations and high home prices, as 56% of homeowners who plan to renovate say they are choosing to improve their home instead of selling it and buying another.
However, the amount that they intend to spend on those renovations has gone down compared with 2016 and 2015 – with the average at $11,800 for 2017 renovations.
That figures is slightly higher for British Columbians at just under $13,200, which is itself beaten out by Ontarians, who plan to spend an average of nearly $16K this year.
According to the survey, this money is not typically being spent on major changes but instead primarily to address “wear and tear” and basic home maintenance, like painting, new flooring and replacing appliances.
Respondents planning to undergo renovations this year said they most worried about project delays, disruption at home and overspending. And worry they might. Although 86% agreed with the statement “renovations end up costing more than you plan for” and 31% said they have blown the budget on a previous reno, 61% of those planning to renovate this year don't have a detailed budget for their project.
“Renovations can be stressful, but having a detailed budget can help minimize the disruption and keep your project on track,” said Scott Wambolt, senior vice-president, Retail and Business Banking, CIBC. “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.”