Thinking of renovating your home? You are in good company.
The Canada Mortgage and Housing Corporation (CMHC) released a report in September that found the renovation market has nearly doubled in size relative to the broader economy since the year 2000 and it is poised to reach nearly four per cent of GDP in the years ahead. The renovation market has overtaken the new construction market in terms of investment dollars spent.
Economic growth, high resale values and low interest rates are all contributors to the increase in the renovation market. Demographics also play a large part in forecasting the amount of renovations that will be performed in the coming years.
CMHC demographic projections suggests households aged 55-64 will comprise nearly 1.1 million Ontario households by 2017. With a historical average propensity to renovate at 35%, this suggests nearly 400,000 households could be in the market to renovate their homes.
This is all good news as this increase in renovation productivity creates an increase in economic wealth.
For example, “an additional billion dollars of new value added investment in the Ontario renovation market generates over 5,000 additional direct jobs across the province, according to the latest Statistics Canada data,” states the report.
In the Durham Region, the strong resale activity contributes to the renovation market.
CMHC analysis indicates that “households undertake renovation work typically within 12 months of an existing home purchase. The bulk of spending, roughly 75 per cent of all projects, have comprised alteration and improvements whose purpose is to add value to the home.”
Last year in Durham Region the renovation market provided 8,944 jobs which amounted to $520 million in wages.
Residential renovation is essential to Durham Region’s economic foundations, job creation, housing quality and long-term prosperity.
Your home is likely your greatest wealth builder. In 2015 the renovation market in Durham Region is estimated to have provided $1.5 billion in investment value.
In Ontario in 2015 the renovation market was estimated at about 25 billion dollars. With an aging housing stock (according to the 2011 census, 57 per cent of the entire housing stock was built before 1980) we are likely to see an expanded renovation market in the coming years.
The Canadian Home Builders’ Association (CHBA) and Ontario Home Builders’ Association (OHBA) together with BILD (Building Industry and Land Development) have been working to promote professional renovators who are properly accredited to perform renovations. The RenoMark program ensures that renovators who are part of the program have the proper insurances and professionalism to do the job correctly.
If you are considering an upgrade on your home you can go to the renomark.ca site to find more information and to find a renovator near you who is qualified to do a professional job and offer the guarantees to prove it.
About the author: Anita Devries is executive officer of the Durham Region Home Builders’ Association, voice of the residential construction industry in Durham.