Altus Group Sees Reno Market Cooling

June 11, 2009



TORONTO — In its May Housing Report, the Altus Group projects renovation spending will fall from $53.2 billion in 2008, to $50.4 billion in 2009, and $49.6 billion in 2010. Declines in employment and earnings are singled out as being the key forces driving the drop in renovation activity.
The report singles out the federal renovation tax credit, low interest rates and a nation-wide aging existing stock of homes as mitigating factors in the renovations slide. The report finds renovation spending fell 16.8 per cent in the fourth quarter of 2008. This was followed by a more modest three per cent decline in the first quarter of this year. Regionally, British Columbia, Alberta, and Ontario are expected to be the worst off this year, with renovation expenses projected to decline by 5.5, 5.5, and 4.6 per cent respectively. Saskatchewan is expected to fare best among the provinces, with only a 1.1 per cent decline expected in 2009. In 2010, the spread is expected to narrow, with all provinces losing between 1.2 and 1.9 per cent of their renovation expenses.