Canadian Funding Corporation – CFC – An estimated 1.7 million households in 10 major Canadian centres surveyed indicated they completed renovations last year that cost an average of approximately $12,600, according to the Renovation and Home Purchase Survey released today by Canada Mortgage and Housing Corporation (CMHC).

“Close to $21.3 billion was spent on renovations in 2008 across the 10 major centres surveyed, an increase of about $1.6 billion compared to 2007,” said Bob Dugan, Chief Economist at CMHC. “As well, when Canadian homeowners were asked about their renovation plans for this year, 46 per cent indicated that they intend to spend $1,000 or more by the end of 2009.”

According to Canadian Funding Corporation – CFC – the Renovation and Home Purchase Survey reports on actual renovation expenditures made in the previous year, as well as intentions to buy or renovate a home in 2009 in the following 10 major centres: St. John’s, Halifax, Québec City, Montréal, Ottawa, Toronto, Winnipeg, Calgary, Edmonton, and Vancouver.1 The survey provides timely information on renovation market trends.

Close to half of households surveyed reported that the cost of renovations undertaken in 2008 was in line with what they had budgeted, while 38 per cent said that they went over their planned budget for the renovation. A quarter of households that undertook a renovation project hired a contractor for a portion of the work. ‘Do-it-yourselfers’ accounted for 30 per cent of renovators in 2008. However, many households (44 per cent) chose to contract out the entire renovation project.

The main reason given by households for renovating in 2008 was to update, add value or to prepare to sell (55 per cent). Thirty-per-cent of respondents stated that the main reason for renovating was that their home needed repairs. The top three renovations completed last year were: painting or wallpapering (28 per cent); remodelling rooms (27 per cent); hard surface flooring and wall-to-wall carpeting (27 per cent).

Of the 10 major centres surveyed, the percentage of households that spent $1,000 or more on renovations in 2008 was highest in St. John’s at 43 per cent, followed by Winnipeg at 42 per cent and Ottawa at 41 per cent. The centre with the lowest proportion of households that undertook renovations was Québec City at 32 per cent.

Similarly, renovation intentions for 2009 across the 10 major centres are strongest in St. John’s and Ottawa, where 56 and 54 per cent of consumers, respectively, indicated they plan to undertake renovations costing $1,000 or more. The proportion of potential renovators is lowest in Québec City at 41 per cent.

On the home purchasing front, five per cent of households across the 10 major centres surveyed intend to purchase a home that will be used as a primary residence in 2009. Forty-nine per cent of households that stated they intend to purchase a home in 2009 are first-time buyers. This percentage is significantly higher than the share (36 per cent) of actual first-time homebuyers in 2008. The majority of first-time buyers are between the ages of 25 and 34.

Home buying intentions are strongest in Calgary and Edmonton where six per cent of households reported that they are considering buying a home this year, down from eight and seven per cent, respectively, in 2008. Purchase intentions are the lowest in Halifax and Montréal at four per cent.