Renovations still rate high for homeowners in Ontario
But reno intentions are down over last year
TORONTO, October 03, 2006 — A healthy majority
(71 per cent) of Ontario homeowners are planning renovations
over the next two years, but that number has decreased by
7 per cent compared to last year, according to a new RBC Royal
Bank survey.
"The rise in interest rates since last year likely
accounts for at least part of this cool-down in renovation
intentions," noted Paul Bimm, vice-president, Builder
Markets, RBC Royal Bank. "But at 71 per cent, we're still
going to see a lot of renovation activity here in Ontario."
According to the survey, conducted by Ipsos Reid, bathroom
and kitchen renovations lead the way as the most popular planned
renovation projects among Ontario homeowners (39 per cent
and 30 per cent, respectively). Twenty-eight per cent said
they were planning to renovate their basement and 26 per cent
said they had landscaping work in mind. Among home improvement
projects, 46 per cent said they intend to paint and 29 per
cent said new floors were on the agenda. Forty-six per cent
of Ontarian homeowners indicated they would roll up their
sleeves and take on most of the work themselves, while another
46 per cent said they would be hiring a contractor.
The majority (61 per cent) of Ontario homeowners who plan
to renovate in the next two years said they will be doing
so to make their homes more attractive, while 28 per cent
said their reno work would be for maintenance purposes. Another
24 per cent said they will be renovating to add to the enjoyment
of their homes, while 19 per cent will be doing so to increase
home value. Ontario homeowners expect to spend an average
of $9,632 on their renos, just above the national average
of $8,982.
Other facts about Ontario homeowners and renovations:
- Sixty-eight per cent have completed renovations in the
last two years.
- Sixty-six per cent said they had a budget for their renovations;
37 per cent of them went over those budgets by an average
of 59 per cent.
- When asked about their biggest renovation headache, 43
per cent cited the time it took for their renovations to
be completed.
- A majority (72 per cent) said they would rather renovate
than sell if their current home was in need of major renovations.
- Seventy-two per cent plan to pay for all or most of their
renovations with cash or savings.
- Of those who plan to finance their renovations, 37 per
cent of Ontario homeowners will be using a line of credit,
26 per cent will rely on their credit cards, and 19 per
cent will add-on to or refinance their mortgage to cover
the cost.
- Forty-eight per cent indicated big box stores are providing
their renovation inspiration; 40 per cent said their ideas
are coming from magazines.
As far as how Ontarians compare to homeowners in other regions
of the country when it comes to renovating plans for the next
two years:
Ontario - 71 per cent, down from 78 per cent in 2005
British Columbia - 65 per cent, down from 75 per cent in 2005
Alberta - 75 per cent, down 76 per cent in 2005
Saskatchewan/Manitoba - 75 per cent, down from 77 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
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. For Ontario, the sample size was 644 homeowners
who had renovated or were considering renovations.
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Media Contact:
Greg Skinner - (416) 974-5904
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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