Canadians renovating less: CIBC study reveals new 5 year low
CIBC is reporting that the amount Canadians are spending on home renovations and upgrades has dropped to the lowest level in five years.
The bank’s study found that “renovation spending is down five per cent to an average of $11,000 per planned spend in 2018,” across the country, reportsBNN Bloomberg.
This year, CIBC’s study found that only 45% of homeowners in Canada planned to renovate, a three per cent fall from the year before.
Though many homeowners know renovation is important to increasing their own property values, interest rates started going up in Canada last July. These rising interest rates go on to affect the price of that costly renovation, potentially causing homeowners to put a stall on their plans.
Only 44% of those surveyed are planning to pay for their renovation job upfront, in cash. One-third believe they could pay off their renovation in a year and another 15% believed it would take over one year to pay off.
"Canadians continue to see the value of investing in their homes, but they’re taking a very practical approach by focusing on lower-cost projects this year," said CIBC Exec. Vice-President Edward Penner.
When CIBC looked west to British Columbia, they noticed the largest renovation-spending drop for this year provincially, a $9,900 planned spend per household. In just two years, that figure is down 35% from what B.C. homeowners spent in 2016, $15,522 per household spend.
The categories for planned renovations also changed, with planned ‘major scale’ operations declining; 52% of those surveyed said they would only be engaging in basic maintenance projects.
“Staying on top of maintenance and repairs may not be as exciting as remodeling your kitchen, but these smaller projects can go a long way to brighten up your home and save you money down the road,” said CIBC’s Penner.