Canadian homeowners are continuing to cut back on home renovation spending this year, with the average spend the lowest in six years, according to a CIBC poll released on Tuesday.
The annual CIBC Home Renovations Poll found that 49 per cent of Canadians plan to renovate their home this year, but the average spend of $10,211 is down from $10,959 last year.
“Home renovation season is upon us again and while Canadians are moderating their spending, the majority tell us they are not preparing a budget, despite the risk of overspending,” said Kathleen Woodard, senior vice-president of personal and small business banking at CIBC, in a news release.
“Even as homeowners are moderating their spending and focusing more on necessary repairs, it’s still important to plan for your renovation and how you’ll pay for it.”
The poll also found:
- 32 per cent have a detailed budget, down from 37 per cent in 2018;
- among those who completed recent renovations, 39 per cent went over budget;
- 58 per cent plan on funding their renovations primarily with cash and savings, while 34 per cent plan to borrow the costs of the renovations;
- 89 per cent of Canadians consider home renovations to be an investment;
- 67 per cent of homeowners prefer to renovate their home than sell it and move elsewhere;
- 57 per cent of Canadians are willing to do the renovations themselves;
- the top three renovations they plan to spend money on: basic home maintenance 50 per cent (52 per cent in 2018); landscaping 42 per cent (39 per cent in 2018); and bathroom renovations 36 per cent (39 per cent in 2018).
The poll found that millennials are most likely to put a budget in place (38 per cent) – but they’re also most likely to break it. Amongst those who had undergone recent renovations, it was millennials who went over budget most often (50 per cent said they’d exceeded their budget on their last renovation), said CIBC.
“On average, both millennials and gen X planning to renovate will spend more on home renovations and improvements ($11,000) than boomers will ($8,582), with basic home maintenance and landscaping at the top of their to-do list,” it said.
– Mario Toneguzzi for Calgary’s Business
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