Opinion: Two trends now dominate renovations

July 12, 2022


Michael Garrity

By Michael Garrity, CEO of Financeit

The home renovation space has seen unprecedented fluctuation over the past two years. What was always a steadily moving industry became jolted by the pandemic, inundated with more demand than ever before yet challenged by supply chain setbacks and labour shortages.
Demand for all home services remains high but two trends we’ve seen this year are growing in market share: the rise of the “multifunctional room” and “eco-renovations.”

Multifunctional room. Many of us worked from home in some capacity; some Canadians had home offices, while others worked in makeshift spaces, such as in the kitchen or playroom. The alternative has become a multifunctional room. This could mean tearing down a wall in the living room to carve out a new spot to work when the TV is off, or finally updating the basement to include a section to put a desk and chair. Whatever the combination, multifunctional rooms can add value to your home.
Eco-renovations. These environmentally friendly home upgrades show Canadians are becoming more environmentally conscious, leading to added energy-efficient home improvements and options for greater at-home sustainability. Whether new energy-efficient windows and doors or a solar panel roof, consumers across the country are continuing to take a greener approach to their living. Like multifunctional rooms, there is a financial benefit present here—saving energy typically means saving on energy bills.

Outlook: Renovations overall continue to be an alternative to buying or selling. Internal data from Financeit, Canada’s leading alternative lender within home improvement, shows interest in leveraging home services businesses has not wavered, but the means of working with them has changed as the number of loans doled out month-over-month is continuing to rise. Recent data tells us that many Canadians (59 per cent) are choosing to renovate their existing property instead of purchasing a new home in 2022, up from 56 per cent at the height of the pandemic in 2020. With interest rates expected to reach levels not seen since 2008, Canadians will likely continue to renovate—which also adds value once they’re ready to sell.