A growing number of Canadians are choosing to invest in their current home instead of upgrading, according to a recent report.
According to a report by CIBC, 48% of Canadians are choosing to renovate their current homes. Of those, 56% are choosing to do so instead of buying a new house.
That’s up from 37% in 2016 and 40% in 2015.
"These findings show that the decision to either renovate or relocate comes down to your financial situation, emotional attachment to your home, and ultimate real estate goals," Scott McGillivray, real estate investor, contractor and television personality, said of the study. "While moving into a new home can help address your need for space, a renovation can often help achieve the same goal, while keeping you in your neighbourhood and, if done right, adding value to your home.
“Do your research first by speaking with your realtor, a trusted contractor and your financial adviser. Expert advice can help you determine which option best fits your needs and your budget."
The results are perhaps unsurprising, given the perceived volatility – imagined or real – among homebuyers in hot markets such as Vancouver and Toronto, where housing regulations have impacted sales over the past few months.
The study found Torontonians and British Columbians plan to spend the most on renovations this year, at $16,000 and $13,200 respectively.
Overall, Canadians plan to spend around $11,800 on renos.
The majority (67%) of those who plan to update their homes will utilize savings to cover the cost; 25% plan to tap into credit.
“The poll findings also reveal that fewer Boomers (36 per cent) plan to renovate than younger Canadians, but they will spend nearly twice as much at $16,800, with the bulk of it being spent on home repairs (45 per cent) or landscaping (34 per cent),” CIBC said in its report. “This group was also more likely to cite "increasing the value of their home to sell" as a primary purpose for undertaking the project.”