Renos a sign of housing markets maintaining across Canada
By Contributor
An estimated 1.7 million households in 10 major centres undertook renovations in 2011 according to Canada Mortgage and Housing Corporation’s (CMHC’s) Renovation and Home Purchase Survey released today. This represents about 37 per cent of homeowner households, a slight decrease from 42 per cent, or 1.9 million households, in 2010. The estimated average cost of renovations undertaken in 2011 was $13,709, an increase from $12,972 in 2010.
“Almost $21 billion was spent on renovations in 2011 across the 10 major centres surveyed, a decrease from 22.8 billion in 2010” said Mathieu Laberge, Deputy Chief Economist at CMHC. “As well, when Canadian homeowners were asked about their renovation plans for this year, 38 per cent indicated that they intend to spend $1,000 or more by the end of 2012. Renovation intentions for 2012 are similar to the 2011 results.”
Of the 10 major centres surveyed, the highest percentage of homeowner households that renovated in 2011 was in St. John’s, NL at 43 per cent, followed by Québec (42 per cent) and Winnipeg (41 per cent). The lowest proportion was Vancouver at 33 per cent.
Overall, 68 per cent of the renovating households did not see their debt level increase as a result of the renovations in 2011. This is up slightly from 66 per cent in 2010.
Renovation intentions for 2012 are strongest in St. John’s, where 48 per cent of consumers indicated they plan to undertake renovations costing $1,000 or more. This is followed by Winnipeg (44 per cent) and Halifax, Ottawa and Edmonton (42 per cent each). The proportion of potential renovators is lowest in Vancouver (34 per cent), Montréal (37 per cent) and Toronto and Calgary (both at 38 per cent).
On the home purchasing front, six per cent of all households indicated they bought a home in 2011, unchanged from 2010. The largest share of homebuyers was in Québec (10 per cent), followed by Ottawa and St. John’s (both at 7 per cent). The lowest share of homebuyers was in Toronto (4 per cent).
Overall, the share of households that intend to buy a primary residence in 2012 is five per cent. Home buying intentions are strongest in Edmonton (7 per cent), Québec and Calgary (both at 6 per cent) and St. John’s and Montréal (5 per cent each). Purchase intentions in all other surveyed centres are at four per cent.
The 2012 Renovation and Home Purchase Survey reports on renovation expenditures made in 2011, as well as intentions to buy or renovate a home in 2012 in the following 10 major centres: St. John’s, Halifax, Québec City, Montréal, Ottawa, Toronto, Winnipeg, Calgary, Edmonton, and Vancouver. More detailed questions on intentions to buy or renovate were asked in Halifax, Montréal, Toronto, Calgary, and Vancouver.
As Canada’s national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.
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