A report from Angus Reid and Finance It found that the vast majority of Canadian homeowners (94%) plan to stay in their current home for at least the next 12 months, with nearly a quarter of them citing the rising cost of living as the reason.
Despite the Bank of Canada cutting interest rates in June, the rising cost of living is making people hesitant to make big financial decisions like buying a new home, with the most cautious group — 30 per cent of people aged 35 to 54 — hesitant to move.
Renovation: A good option
The report also found that 25% of those who are staying put plan to renovate their home in the next 12 months.
“With the rising cost of living now placing a strain on many Canadians, we're seeing a notable change in homeowner behavior,” says Michael Garrity, executive chairman of Financeit Inc. Canada. “More and more Canadians are choosing to stay where they are and invest in renovating their current home rather than moving to a new one. We understand that improving your current living space can be a more economical and satisfying choice in the long run.”
In terms of the purpose of their renovations, 53 per cent of homeowners want to improve the functionality of their home, with Ontario homeowners having the highest percentage at 63 per cent.
21% of people are considering renovating to increase the value of their home, with 65% of Manitoba homeowners considering renovating for this reason. Of those considering renovating in the next year, 37% plan to remodel the kitchen, bathroom or basement, 24% want to improve landscaping and 17% plan to replace windows or doors.
Energy Efficient Upgrades
The report also found that Canadians are looking for innovative ways to save money through renovations, with 62 per cent of homeowners likely to invest in energy-efficient renovations to save on their utility bills.
Homeowners in Atlantic Canada were most likely to invest in energy-efficient home improvements at 71 per cent.