Home renovations increase although with lower budgets

With higher house prices in many areas and economic uncertainly weighing heavily on some homeowners’ minds, more are choosing to stay in their current homes and renovate.

A survey conducted by Nielsen for CIBC reveals that the number of homeowners planning to renovate has increased from 40 per cent last year to 42 per cent in 2015. However, the average budget has fallen from $20,000 to $17,000.

Top priorities are general repairs and redecoration (64 per cent) followed by landscaping (28 per cent) and new bathrooms (29 per cent) and kitchens (28 per cent). The largest percentage of people are planning to spend between $5,000 and $10,000.

Scott McGillivray, a real estate investor and host of HGTV's Income Property, commented: "I find that more and more people right across Canada are looking for creative solutions to add more space so that they don't have to move.”

He advises homeowners to concentrate on practical improvements rather than spending money on “wow” factors such as a swimming pool: "You don't want to build a $150,000 custom kitchen in a $200,000 home. You have to be realistic about your needs, and where money is best spent." 
 

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COMMENTS

  • by Omer Quenneville 2015-05-11 8:25:27 AM

    For Toronto, the double land transfer tax has a lot to do with people renovating over moving. Trying to squeeze more creature comfort and life quality out of there existing home. Unfortunately, this will also contribute to urban sprawl. I have personally experienced clients moving out of the 416 area when they were forced to move whether trading up because of new additions to family or downsizing to pull equity for retirement. It is unfortunate that the elderly have to leave friends and family behind to downsize at a time in their life when they may very well need the help of friends and family most.

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