A healthy majority (71 per cent) of Ontario homeowners are planning renovations over the next two years, but that number has decreased by 7 per cent compared to last year, according to a new RBC Royal Bank survey.
"The rise in interest rates since last year likely accounts for at least part of this cool-down in renovation intentions," noted Paul Bimm, vice-president, Builder Markets, RBC Royal Bank. "But at 71 per cent, we're still going to see a lot of renovation activity here in Ontario."
According to the survey, conducted by Ipsos Reid, bathroom and kitchen renovations lead the way as the most popular planned renovation projects among Ontario homeowners (39 per cent and 30 per cent, respectively). Twenty-eight per cent said they were planning to renovate their basement and 26 per cent said they had landscaping work in mind. Among home improvement projects, 46 per cent said they intend to paint and 29 per cent said new floors were on the agenda. Forty-six per cent of Ontarian homeowners indicated they would roll up their sleeves and take on most of the work themselves, while another 46 per cent said they would be hiring a contractor.
The majority (61 per cent) of Ontario homeowners who plan to renovate in the next two years said they will be doing so to make their homes more attractive, while 28 per cent said their reno work would be for maintenance purposes. Another 24 per cent said they will be renovating to add to the enjoyment of their homes, while 19 per cent will be doing so to increase home value. Ontario homeowners expect to spend an average of $9,632 on their renos, just above the national average of $8,982.
Other facts about Ontario homeowners and renovations:
- Sixty-eight per cent have completed renovations in the last two years.
- Sixty-six per cent said they had a budget for their renovations; 37 per cent of them went over those budgets by an average of 59 per cent.
- When asked about their biggest renovation headache, 43 per cent cited the time it took for their renovations to be completed.
- A majority (72 per cent) said they would rather renovate than sell if their currenhome was in need of major renovations.
- Seventy-two per cent plan to pay for all or most of their renovations with cash or savings.
- Of those who plan to finance their renovations, 37 per cent of Ontario homeowners will be using a line of credit, 26 per cent will rely on their credit cards, and 19 per cent will add-on to or refinance their mortgage to cover the cost.
- Forty-eight per cent indicated big box stores are providing their renovation inspiration; 40 per cent said their ideas are coming from magazines.
As far as how Ontarians compare to homeowners in other regions of the country when it comes to renovating plans for the next two years:
Ontario - 71 per cent, down from 78 per cent in 2005
British Columbia - 65 per cent, down from 75 per cent in 2005
Alberta - 75 per cent, down from 76 per cent in 2005
Saskatchewan/Manitoba - 75 per cent, down from 77 per cent in 2005
Quebec - 66 per cent, down from 71 per cent in 2005
Atlantic Region - 80 per cent, down from 82 per cent in 2005
These are some of the findings of an RBC Royal Bank poll conducted in English and French by Ipsos Reid between August 17 and 21, 2006. The online survey is based on a randomly selected, nationally representative sample of 2,367 Canadian homeowners. For Ontario, the sample size was 644 homeowners who had renovated or were considering renovations.
newswire.ca
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