Subscribe for Home Building News, Design Tips & Special Offers
In a recent study, BMO found that Canadians spent more money on home renovations than on new builds in the last twelve months. The study says that home renovations outpaced new builds $48.4 billion to $46.3 billion, respectively.
That’s an increase of about 3% from the previous period. Perhaps unsurprisingly, that percentage is higher in growing metropolitans like Toronto, Vancouver and Calgary.
The study also reveals that, “Renovation spending has been by far the fastest growing component of residential investment in Canada over the past decade, significantly outpacing the growth in new construction and home resale-related outlays.” And that the investment grew 9% annually from 2000-2007, slowing and moderating (but still growing steadily) between 2008-2014.
What does this mean to us? These numbers tell a story about a shift in priorities and mindset of the average homeowner. It seems that renovation projects have become a critical (and substantial) part of the household’s annual budget, and are not just for future gains. Homeowners are ostensibly putting money into renovations that will extend their time in the home—not looking to build new. Projects like a kitchen remodel, updating master bedroom suite, finishing a basement, or even additions are clear signs that a family wishes to stay in their current home, turning it into their dream home one project at a time.
We dig deeper into these studies, what they mean for the homeowner, and renovation market as a whole in our new e-book, “The Ultimate Home Renovation Guide: Professional Room-by-Room Advice for Your Next Remodel."