Despite Fewer Canadians Planning Home Renovations Over the Next 12 Months, Those That do Intend to Renovate are Likely to Spend Nearly Double, According to HomeStars 2022 Reno Report

HomeStars' fourth annual survey reveals that despite a downturn in planned home renovations, Canadian homeowners do expect to spend nearly twice as much on renovations, on average, in the next 12 months as they did in the previous year.

TORONTO--(BUSINESS WIRE)-- Despite national inflation, rising interest rates, and a volatile public market, a new survey from HomeStars reveals that Canadian homeowners have spent significantly more on renovations this year than in years past. On average, those who completed indoor renovations in the last 12 months spent $13,000, up from $8,300 last year. Although more Canadians have indicated an intention to pause home renovations in the coming year, and even with rising material and labour costs, it is estimated that Canadian homeowners on average, will double their total home reno spending this upcoming year.

With 80 per cent of respondents reporting to have cash on hand to fund planned home renovations, there was an average increase of 57 per cent in total spending for indoor renovations, demonstrating that Canadians want to reinvest where they’re living. Along with increased spending, HomeStars also saw the continued trend that Canadians want to stay put. Three-in-four (76 per cent) of those surveyed reported that they are not considering moving in the next 12 months, while 14 per cent are currently undecided.

“Given the unique climate that Canadians are currently living in, we were surprised to see the increase in home renovation investments made over the past 12 months,” says Shir Magen, CEO of HomeStars. “We’re seeing pandemic changes year-over-year; however, what’s interesting with this year’s data is that despite pandemic restrictions easing, Canadians aren’t reverting to their pre-pandemic tendencies. We’re seeing that homeowners are sticking to the renovation spending habits that they had at the height of the pandemic, and for the second year in a row, the extra funds that might have been used for travel or entertainment are instead being reinvested into their homes.”

Though most of Canada has eased out of many pandemic restrictions, the pandemic continued to motivate Canadian homeowners to renovate their homes. In fact, two in five (40 per cent) homeowners say the presence of COVID-19 restrictions influenced their decision to renovate in the past year. Spending more time at home and having extra cash on hand as a result of the pandemic encouraged even more homeowners to renovate, an eight percentage point increase from 2021.

Other key findings from the survey include:

• Cost of materials still played a role - two in five respondents postponed some of their planned renovations due to the high cost of building materials, a six percentage point jump from last year. Atlantic Canadians are significantly more likely (53 per cent) than those in other regions of the country to have postponed renovation plans in the past year due to the high cost of building materials.
• Emergency Repairs - Plumbing repairs were the single-most common emergency repair, nearly twice as common as appliance repairs, the next highest issue.
• Funding Major Home Improvement Projects - Among those who financed their renovation (20 per cent), the vast majority used a credit card or line of credit.
• Use of Smart Technology - Smart thermostats and Internet-based home assistants remain the most widely used “smart tech” products, while Internet-connected appliances are still more of a novelty, with only about one-in-eight surveyed homeowners using them.
• Fantasy Feature - Outdoor cabana with full chef's kitchen ranked number one for the second year in a row; however, with many COVID restrictions being relaxed or removed in the past year, there has been a decline in the proportion of homeowners yearning for a resort-style pool in their own backyard (25 per cent, down from 36 per cent in 2021).
• Moving Areas - At the beginning of the pandemic, we saw many Canadians moving out of city centres to purchase larger homes and have more space. Our recent survey showed about two-thirds (65 per cent) of homeowners who bought a new home stayed in the same setting as before. However, the pandemic is still driving movement within rural, urban or suburban areas with 44 per cent of those who previously lived in an urban centre moved to the suburbs or a rural area.
• Though the proportion of Canadian homebuyers moving locations did not change from last year, the percentage of Canadian homebuyers who changed the type of home they were living in increased. Among those who purchased a home in the past year, about a third (32 per cent) changed what type of home they were living in, a significant increase from 2021 (19 per cent).

Since this survey was conducted in March, inflation continued to rise, prompting the Government of Canada to introduce significant interest rate hikes which had a near immediate impact on home sales and prices in some parts of the country. As a result, the HomeStars team surveyed 985 homeowners from its database in June to get a sense of whether Canadian homeowner perceptions and intentions for renovations for the coming year have changed. In large, despite more homeowners holding back renovations, intent to renovate and major trends remain high.

For more insights, information on spending, and findings, check out the full 2022 Reno Report: https://homestars.com/reno-report/

About HomeStars

HomeStars is Canada's largest online marketplace connecting homeowners with trusted home service professionals. In 2021, 8 million homeowners visited HomeStars looking for a pro for their next home improvement project. HomeStars was created in 2006 to help homeowners make better hiring decisions. HomeStars is based in Toronto, Ontario, and is an operating business of Angi, Inc. (NASDAQ: ANGI). To learn more, visit @HomeStars on Facebook, Twitter or Instagram.

About the HomeStars Database Survey: These are the findings of a survey conducted by HomeStars from March 21 to March 25, 2022, with a sample of n=1,110 Canadian homeowners aged 23 years or older (excluding Quebec) who completed at least one home renovation or repair in the past year. All respondents were members of the online Angus Reid Forum, and the survey was conducted in English. Regional boosts were added to reach a minimum of 200 completes each in Alberta and British Columbia and 100 completes in Atlantic Canada

About the Angus Reid Forum: The Angus Reid Forum is Canada’s most well-known and trusted online public opinion community consisting of engaged residents across the country who answer surveys on topical issues that matter to all Canadians.

About Angus Reid Forum surveys: The precision of Angus Reid Forum online polls is measured using a credibility interval. In this case, the poll is accurate to within +/- 2.9 percentage points, 19 times out of 20, had all Canadians been polled. All sample surveys and polls may be subject to other sources of error, including but not limited to coverage error and measurement error.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220622005560/en/

Media

Ali Clarke, Talk Shop Media

ali@talkshopmedia.com

(647) 218-2761

Source: HomeStars