Less renovations but much higher spending

July 6, 2022




A new survey from HomeStars, released June 15, reveals Canadian homeowners spent significantly more on renovations in the past year than in years past. On average, those who completed indoor renovations in the last 12 months spent $13,000 —up from $8,300 in the preceding twelve-month period (March 2020 to March 2021). Although more Canadians indicated an intention to pause home renovations into 2023, even with rising material and labour costs it is estimated that Canadian homeowners, on average, will double their total home reno spending.
HomeStars is Canada's largest online marketplace connecting homeowners with home service professionals. The survey was conducted in March 2022 with Angus Reid, with a follow-up survey in June 2022.
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. 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,” said HomeStars CEO Shir Magen.
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. Spending more time at home and having extra cash on hand as a result of the pandemic encouraged even more homeowners to renovate—resulting in an 8 per cent increase from 2021.

Key findings from the survey:

• 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 6 per cent jump from 2021.
• Funding major projects – Among those who financed their renovation (20 per cent), the vast majority used a credit card or line of credit.
• 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 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, only 25 per cent of homeowners want a swimming pool in their backyard—down from 36 per cent in 2021.
• Moving areas – At the beginning of the pandemic, many Canadians moved out of city centres to purchase larger homes and have more space. The survey showed about two-thirds (65 per cent) of homeowners who bought a new home stayed in the same neighbourhood as before.

HomeStars also surveyed 985 homeowners from its database in June to get a sense of whether intentions for renovations for 2023 had changed following increases in mortgage rates. Despite more homeowners holding back renovations, HomeStars found intent to renovate remained high.
For more insights and information on spending, check out the full 2022 Reno Report