Renovations top lotto wish list
April 4, 2019
Half of Canadians say that if handed a windfall—such as a $50,000 lottery win—they would spend it on home renovations while just 30 per cent say they would move to a better home, according to a recent online study by RateSupermarkets.ca.
"Given the current real estate market and tightening mortgage rules, renovating an existing home makes a lot of financial sense for many Canadians," said Janine White, vice-president of marketplace and strategy at RateSupermarket.ca.
The survey also found that 40 per cent of respondents felt that renovating will increase the value of their home. More than a quarter of respondents stated that they would stay put because they don't think they can find a house right now within their budget.
The RateSupermarket.ca survey also suggests that rural and suburban Canadians would prefer to stay in their homes, with 54 per cent of suburban and 59 per cent of rural dwellers saying they'd renovate, against 44 per cent of city dwellers.
The survey also revealed a split between younger and older respondents. While only 15 per cent of Canadians over age 65 would move, 43 per cent of those aged between 18 and 35 would buy a home rather than renovate if handed a windfall.
Altus Group found that about half the money borrowed for home renovations came from home equity lines of credit.
In 2017, home renovation spending in Canada reached $77.7 billion and has been rising since 2013, according to Altus. The final numbers are not in for 2018, but a May poll last year from CIBC showed that 45 per cent of Canadian homeowners planned some home improvements.
But renovation contractors have told Home BUILDER there has been a decline in extensive, whole-house renovations over the past few months, with most clients opting for specific projects, such as a kitchen makeover. Altus analyst Patricia Arsenault said renovation spending could ease from the current record pace if Canadian residential sales continue to decline as they have over the past year. She noted there is a direct correlation between housing sales and renovation spending.