Nearly half of Canadians are engaged in home renovations, with average expenditures doubling since 2019

Canadians are willing to pay more to make their homes eco-friendly

TORONTO, Nov. 28, 2024 /CNW/ - As interest rates continue to decline, poll findings show that renovations serve both practical and personal purposes, with over three in five (63%) Canadians driven by ambition to create a home to their taste and a desire to increase property value.

Nearly half of Canadians (49%) are in the process of planning, executing or have recently completed home improvements. Homeowners are reporting higher expenditures, with an average expected renovation cost of $19,000 which is nearly double the reported spend in 2019 ($10,000). Over half (57%) have paid or plan to cover costs using cash or personal savings, with 49% having a detailed, budgeted plan in place and 80% expressing confidence in their budget, timeline and scope.

"Despite rising costs, Canadian homeowners are investing significantly in practical upgrades to their homes right now, with 60 per cent choosing to renovate instead of selling their homes," says Carissa Lucreziano, Vice-President, Financial Planning and Advice, CIBC. "Our results show that a quarter of renovators are consulting, or expecting to consult with a financial advisor in advance of their project, to help them create a plan, a budget and also manage any unexpected costs along the way."

Three quarters of Canadian renovators have reported making compromises to reach their desired renovation goals, including being inconvenienced, reduced leisure and family time, cutbacks in discretionary spending and incurring higher renovation costs. Over half (59%) of Canadians are willing to pay more for a renovation that makes their home more environmentally friendly, and 73% of Canadians who have completed renovations or are planning them in the coming year say they are interested in incorporating smart, sustainable and/or energy efficient technology.

Other key findings include:

• Top five renovations undertaken by homeowners in the past 12 months:
  • Small upgrades and renovations (painting, general repairs etc.): 46%
  • Bathroom upgrades or additions: 39%
  • Flooring upgrades: 32%
  • Kitchen upgrades or remodels: 27%
  • Basement finishing: 26%
• Around four in 10 (41%) renovators cite cosmetic reasons as the purpose of the renovation, followed by functionality (39%), address wear and tear (39%), and to increase the home value (27%).

CIBC has a variety of online tools and resources to help Canadians through the renovation and upgrading process:

• CIBC's loan and line of credit calculators are tools you can use to gauge how much you can borrow to put towards desired renovations.
• The CIBC Home Power Plan - using the equity in your home, you can combine a line of credit and a mortgage in order to consolidate all of your personal credit under one low-interest and secured borrowing solution, which can be adjusted to help fund your renovation project and meet your future borrowing needs.
• CIBC Smart Planner is an intuitive tool that gives you timely insights into your spending habits to help you track and understand your finances better so that you can stay on top of your goals. 
• The CIBC Savings Calculator offers tips on how you can grow your savings, and reach your home renovation ambitions faster.

Disclaimer

The findings are from an Ipsos poll conducted between September 18 and September 25, 2024, on behalf of CIBC. For this survey, a sample of 1,500 Canadians aged 18+ were interviewed online. Sample was sourced from the Ipsos panel. Weighting was employed to balance demographics to ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±3.1 percentage points, 19 times out of 20, had all Canadians been polled. The credibility interval will be wider among subsets of the population.

About CIBC

CIBC is a leading North American financial institution with 14 million personal banking, business, public sector and institutional clients. Across Personal and Business Banking, Commercial Banking and Wealth Management, and Capital Markets, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across Canada, in the United States and around the world. Ongoing news releases and more information about CIBC can be found at www.cibc.com/ca/media-centre.

SOURCE CIBC