Cost of living spurs Canadians to renovate instead of move
A new study revealed that while most Canadian homeowners plan to stay put due to rising living costs, many are still looking to improve their current living spaces through renovations.
An Angus Reid survey, conducted on behalf of Financeit, found that 94% of Canadian homeowners intend to remain in their current homes for at least the next year. Nearly a quarter (24%) of these homeowners cited the increasing cost of living as a primary reason for their decision.
Despite financial constraints, one in four Canadian homeowners plan to undertake renovations in their current homes within the next year. This trend suggests that while purchasing new homes may be out of reach, many Canadians are seeking ways to upgrade their living spaces on a budget.
"With the very high current cost of living burdening so many Canadians, we're seeing a notable shift in homeowner behaviour," Michael Garrity, executive chair of Financeit Canada, said in the report. "More and more Canadians are choosing to stay where they are and instead invest in renovating their current homes rather than moving to a new one. We understand that enhancing one's current living space can be a more economical and satisfying option in the long run.”
Renovations on the rise
The survey found that 25% of respondents plan to renovate within the next year. Among those, 53% aim to improve the functionality of their homes, with homeowners in Ontario being the most likely to renovate at 63%.
Additionally, 21% of respondents want to renovate to increase their home's value, with a notable 65% of homeowners in Manitoba looking to do the same.
Among the planned renovations, 37% of Canadians are focusing on remodelling their kitchens, bathrooms, or basements, 24% are planning landscaping projects, and 17% intend to replace windows and doors.
Energy efficiency is also a priority, with 62% of Canadian homeowners likely to invest in energy-efficient renovations to reduce future utility costs. Atlantic Canada leads this trend at 71%.
High living costs
The rising cost of living has made many Canadians hesitant to make significant financial decisions like purchasing a new home.
Read next: Bank of Canada reveals latest inflation expectations
Despite the Bank of Canada's interest rate cut in June, 94% of homeowners plan to stay in their current homes over the next year. Among those, 24% have been deterred from moving due to the high cost of living.
Individuals aged 35-54 are the most cautious about relocating, with 30% preferring to stay put during these financially tight times.
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