| $17B spent on renos last year, CMHC says |
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| Written by Michael J. Knell | |
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OTTAWA – Approximately 1.5 million households in ten 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 ten major centres surveyed,” said Bob Dugan, CMHC chief economist. “As well, 46 per cent of homeowners in these ten 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. It reports on actual renovation expenditures made in the previous year, as well as intentions to buy or renovate in 2007 in ten major centres across Canada. The new survey enables all market participants to benefit from timely information on renovation market trends. Close to half (47 per cent) 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 per cent of respondents) as opposed to doing the work themselves (34 per cent). The main reason given by households for renovating in 2006 was to update, add value or to prepare to sell the residence (61 per cent). 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 per cent), painting or wallpapering (32 per cent), and hard surface flooring and wall-to-wall carpeting (32 per cent). The share of households who spent $1,000 or more on renovations in 2006 was the largest in St. John’s at 37 per cent, followed by Halifax at 36 per cent, while a smaller proportion of households in Vancouver (30 per cent) undertook renovations last year. As for renovation intentions across the ten major centres in 2007, they are strongest in Edmonton and Winnipeg where 51 and 50 per cent 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 per cent of households in each centre intending to renovate. On the home purchasing front, eight per cent of households across the ten 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 per cent 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 per cent of households reported that they are considering buying a home this year. Purchase intentions are also strong in Edmonton where 11 per cent of households plan to buy, while the share is lowest in Montréal and Québec (six per cent). The ten major centres included in the study are: St. John’s, Halifax, Québec, Montréal, Ottawa, Toronto, Winnipeg, Calgary, Edmonton, and Vancouver. The Renovation and Home Purchase Survey is an updated and expanded version of the consumer Intentions to Buy or Renovate a Home Survey. Respondents are also asked about motivations or barriers; the type, size and price range of homes; insights about their planned renovations as well as important demographics, income, tenure, and location information. All ten centres were asked whether they intend to spend more than $1,000 on renovations in 2007 and whether they intend to buy a home in 2007. More detailed questions on intentions to buy or renovate were asked in Halifax, Montréal, Toronto, Calgary, and Vancouver. To obtain the free electronic version of the report or the detailed data table reports for the individual centres or all centres combined, visit the CMHC website at: https://www03.cmhc-schl.gc.ca/b2c/b2c/init.do?language=en https://www03.cmhc-schl.gc.ca/b2c/b2c/init.do?language=fr |
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