Homeowners invest $19,000 on average, with most favouring energy-efficient and smart technologies
A recent CIBC poll shows that 63 percent of Canadians plan to invest in home renovations to reflect their personal taste and increase property value.
Declining interest rates have motivated Canadians to prioritize both personal and practical reasons for improving their homes.
Currently, 49 percent of Canadians are either planning, executing, or have recently completed home improvement projects.
Homeowners report spending more on renovations, with an average expected cost of $19,000, almost double the $10,000 reported in 2019.
Over half of these renovators, 57 percent, rely on cash or personal savings to cover the costs. 49 percent have developed detailed budgets, and 80 percent feel confident about their plans, timelines, and scopes.
“Despite rising costs, Canadian homeowners are investing significantly in practical upgrades to their homes right now, with 60 per cent choosing to renovate instead of selling their homes,” says Carissa Lucreziano, vice-president, Financial Planning and Advice at CIBC.
She adds, “Our results show that a quarter of renovators are consulting or expecting to consult with a financial advisor in advance of their project, to help them create a plan, a budget and also manage any unexpected costs along the way.”
Renovators report making sacrifices to achieve their goals. Three-quarters of Canadians undergoing renovations have faced compromises, such as dealing with inconveniences, reducing leisure and family time, cutting back on discretionary spending, and managing higher costs.
Interest in sustainability is also rising, with 59 percent of Canadians willing to pay more for environmentally friendly upgrades.
Among those who have completed or plan to complete renovations, 73 percent are keen to incorporate smart, sustainable, or energy-efficient technology into their projects.
The survey highlights the most common renovations completed over the past year.
Small upgrades, such as painting and general repairs, lead at 46 percent, followed by bathroom upgrades or additions at 39 percent, flooring upgrades at 32 percent, kitchen remodels at 27 percent, and basement finishing at 26 percent.
Motivations for these projects include cosmetic improvements (41 percent), enhancing functionality (39 percent), addressing wear and tear (39 percent), and increasing home value (27 percent).
CIBC provides various tools and resources to support Canadians during their renovation journeys. Its loan and line of credit calculators help users determine borrowing capacity, while the CIBC Home Power Plan allows homeowners to leverage their home equity to fund projects.
Additionally, the CIBC Smart Planner offers insights into spending habits to help manage finances effectively, and the CIBC Savings Calculator provides tips for growing savings faster to meet renovation ambitions.
