Renovating tops relocating
Canadians prefer improving to moving, according to RBC Home
Renovation Survey
TORONTO, October 03, 2006 —
Given the choice, most Canadian homeowners would opt
for hammers, nails and paint brushes, rather than packing
tape and cardboard boxes. Fully 80 per cent of Canadian homeowners
say that, if their home needed major renovations, they would
rather renovate, than sell and move, according to the 2006
RBC Royal Bank Renovation Survey. As well, 70 per cent stated
they are planning renovations or home improvements over the
next two years.
"Renovation intentions are slightly lower than last
year - down by six points - but at 70 per cent they still
remain very strong," noted Catherine Adams, vice-president,
home equity financing for RBC Royal Bank. "Canadians
continue to consider any investment in their homes to be a
very good investment indeed."
Almost half (48 per cent) are planning to do the renovation
themselves, and 40 per cent will be using a contractor - an
upward trend since 2004. Fewer plan to complete the reno using
family members (15 per cent) - a downward trend over the last
two years.
According to the RBC survey, Canadians planning renovations
indicated they plan to spend $8,982 on average - up slightly
from 2005. To finance their reno expenditures, these Canadians
will be less likely to tap into cash or savings than they
were two years ago (48 per cent in 2006 compared to 69 per
cent in 2004). The two alternate options most often cited
by those surveyed who didn't want to use their cash or savings:
lines of credit (38 per cent) and credit cards (26 per cent).
The RBC survey also showed that establishing realistic reno
budgets continues to be a concern. Of the 64 per cent of Canadians
who budgeted for renos completed over the past two years,
four out of every ten went well over their budgets - on average
by 88 per cent. Additionally, only 13 per cent of Canadians
planning renos would consider a home equity line of credit
or a homeline plan - the lowest cost of all the borrowing
options.
"When people are looking for a mortgage they're usually
very cost sensitive, and they seek advice about the best possible
rate and product combination - we don't always see those same
savvy cost comparisons being made when it comes to home renovations,"
added Ms. Adams. "Many renovations involve sizable expenses
to begin with, that's why it's always a good idea to get advice
about the lowest financing options before taking on a reno
or home improvement project -- because it's easy for extra
costs to start mounting up as final decisions are being made."
The most popular renovations being planned are bathrooms
(36 per cent), kitchens (28 per cent) and basements (27 per
cent) - usually done to make their homes more attractive (60
per cent) and often to meet the need for more space. Typical
home improvements include painting (46 per cent), floors (30
per cent), windows (21 per cent) and roofs (12 per cent).
Top sources of renovation inspiration: so-called Big Box
stores (44 per cent) and magazines (39 per cent). Top sources
of desperation: time involved in renovating (44 per cent),
inconvenience (33 per cent), and overall costs (28 per cent).
Just the Facts
Planning to renovate or make home improvements over the
next two years:
- British Columbia - 65 per cent (down from 75 per cent
in 2005)
- Alberta - 75 per cent (down from 76 per cent in 2005)
- Saskatchewan/Manitoba - 75 per cent (down from 77 per
cent in 2005)
- Ontario - 71 per cent (down from 78 per cent in 2005)
- Quebec - 66 per cent (down from 71 per cent in 2005)
- Atlantic Region - 80 per cent (down from 82 per cent in
2005)
By gender:
- Men - 68 per cent (up from 65 per cent in 2005)
- Women - 72 per cent (unchanged from 2005)
By Age:
- 18 to 34 - 69 per cent (down from 72 per cent in 2005)
- 35 to 54 - 75 per cent (up from 71 per cent in 2005)
- 55 and above - 65 per cent (up from 60 per cent in 2005)
These are some of the findings of an RBC Royal Bank poll
conducted in English and French by Ipsos Reid between August
17 and 21, 2006. The online survey is based on a randomly
selected, nationally representative sample of 2,367 Canadian
homeowners.
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For more information, please contact:
Kathy Bevan, Media Relations, (416) 974-8810
For full tabular results, please see the Ipsos-Reid website
at www.ipsos.ca.
Downloadable graphics also available at www.rbc.com/newsroom.
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