Current economic conditions incentivize a significant number of homeowners to stay put
The share of Canadians looking to invest in home renovations in the near future considerably outstrips those planning to own a new home this year, according to a new survey conducted by Ipsos for the BMO Financial Group.
The study found that as many as 62% of Canadian homeowners are intending to renovate their homes this year, with those living in Toronto (63%) most likely to do so, followed by those in Montreal (59%) and Vancouver (58%).
By comparison, only 22% of respondents said that they will be buying a new home this year.
“We have seen a lot of change unfold in the housing market since the beginning of the pandemic – record low interest rates, incredible demand, and a significant rise in people working from home,” said Hassan Pirnia, head of personal lending and home financing products at BMO Bank of Montreal. “Taken together, it is incentivizing existing homeowners to invest in their current home instead of looking to move.”
Read more: How much are Canadians spending on housing renovations?
The survey added that 44% of Canadians are planning to spend more on home renovations than they did during the previous year.
Savings amounting to roughly $212 billion (per Borrowell estimates) will fuel much of this activity. Nearly half (47%) of current homeowners are planning to use their saved-up cash to pay for renovations, with credit cards (24%) and lines of credit (16%) also being considered for these expenses.
