RBC expects Canadian renovation slowdown,
but spending will still be up
Little houses on the prairies most likely to get makeover
TORONTO, October 03, 2007 — While fewer Canadian
home owners are planning to renovate than in previous years,
home improvement spending is on the rise. This is according
to a study by RBC/Ipsos Reid that shows renovation plans are
down almost everywhere in Canada except for Saskatchewan and
Manitoba.
According to the latest survey, 67 per cent of Canadian home
owners say they are planning to renovate over the next two
years. This is down from 70 per cent in 2006 and 76 per cent
in 2005. While intentions are down overall, Canada's would-be
renovators anticipate spending more on their renovations with
the average spend moving to $9,850 from $8,982 in 2006 and
$8,834 in 2005.
"Seventy-five per cent of homeowners in Saskatchewan
and Manitoba are preparing to renovate within the next two
years which makes this region of the country the only area
where intentions are on the rise," said Catherine Adams,
vice-president, Home Equity Financing. "Another surprise
for us was that homeowners on the prairies are also the most
likely to finance their renovations by using the equity already
built up in their homes."
The RBC study notes the primary reasons among those who intend
to renovate in the next two years are esthetics (61 per cent),
safety/maintenance (28 per cent), enjoyment (25 per cent),
and increasing value (23 per cent). Bathrooms (35 per cent)
and kitchens (29 per cent) remain the most popular of all
renovation projects. These results are consistent with previous
years.
The study also noted a steady decline in the number of homeowners
who have completed renovation projects in the last two years,
with the results going to 61 per cent in 2007 from 65 per
cent in 2006 and 70 per cent in 2005. Among those who renovated
in the last two years, two thirds (66 per cent) had a budget,
but nearly half (43 per cent) went over their budget. On average,
those with budgets exceeded their budgets by 74 per cent.
As for the biggest "renovation headaches" the time
it took to complete renovations (46 per cent) and the overall
cost (34 per cent) were the undisputed leaders.
"Whether the reason for starting a project is to make
a house more attractive or to increase its value, renovating
is often fraught with frustration," said Adams. "Once
you're at it, it's so easy to keep adding one more project
to the "to do" list, that the next thing you know
you're over budget and behind schedule. The best course of
action for lessening renovation headaches is to expect the
unexpected. However, advance planning, a realistic budget,
and investigating more flexible financing options will also
help."
These are some of the findings of an RBC poll conducted by
Ipsos Reid between August 1 and August 7, 2007. The online
survey is based on a randomly selected representative sample
of 3853 adult Canadian homeowners. With a representative sample
of this size, the results are considered accurate to within
±1.58 percentage points, 19 times out of 20, of what
they would have been had the entire adult Canadian population
been polled. These data were statistically weighted to ensure
the sample's regional and age/sex composition reflects that
of the actual Canadian population according to the 2001 Census
data.
Renovations by the Numbers
| Intentions among Regions |
Average Spend |
| BC |
70% |
$11,629 |
| Alberta |
69% |
$13,012 |
| Sask/Man |
75% |
$ 9,799 |
| Ontario |
66% |
$10,495 |
| Quebec |
64% |
$ 6,861 |
| Atlantic Canada |
67% |
$ 7,588 |
Those Who Would Consider Borrowing Against Home Equity
by Key Demographics
| BC |
42% |
Men |
45% |
| Alberta |
42% |
Women |
38% |
| Sask/Man |
49% |
|
|
| Ontario |
37% |
|
|
| Quebec |
45% |
|
|
| Atlantic Canada |
44% |
|
|
Renovate or Sell/Move
| Region |
Renovate |
Sell |
| BC |
71% |
25% |
| Alberta |
75% |
20% |
| Sask/Man |
79% |
15% |
| Ontario |
72% |
24% |
| Quebec |
78% |
15% |
| Atlantic Canada |
73% |
23% |
Fun Facts
- Canadian home renovators are far more likely to get their
inspiration from big box stores (41 per cent) and TV home
improvement shows (26 per cent) than from a spouse or partner
(one per cent).
- Saskatchewan/Manitoba leads the country in hot tub intentions
(five per cent).
- Only three per cent of homeowners who renovated in the
last two years say they did not have any "renovation
headaches".
- 30 -
Media Contact:
Judi Levita, Media Relations, 416-974-8810
For full tabular results, please see the Ipsos Reid website
at www.ipsos.ca.
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