Renovation Intentions Slide
Canadian home renovation spending is forecast to decline in 2020, though not as significantly as the overall economy, says Altus Group in its latest ‘Housing Report.’ Total renovation spending in 2019 totalled $80.1 billion, of which $61.2 billion was spent on upgrading or making improvements to homes; this virtually matches the total spending on new home construction nationally. Renovation spending has also been steadily increasing, with annual growth of renovation spending exceeding that of the overall economy. Undoubtedly impacted by the COVID-19 pandemic, Altus Group’s homeowner renovation intentions index has plunged. With the exception of Atlantic Canada, homeowners in most regions across the country report lower renovation intentions than last year, primarily among homeowners not also intending to move. Intentions to undertake larger renovations of $10,000 or more in the next year are down from last year, while intentions to buy another home are virtually unchanged. Only two per cent of current homebuyers are planning to do both – these homeowners may either be planning significant renovations to prepare their current home for sale, or planning sizable renovations on their next home.