Are you thinking about putting your home on the market? You may want to wait if you can. According to a recent study, a whopping 94 per cent of Canadian homeowners are planning to stay in their current homes this year.
The 2024 Canadian Homeowner Renovation Report was put together by Angus Reid and Financeit (a point-of-sale financing solutions company) and was released in mid-July. It found that, because of the rising cost of living, most homeowners simply can’t afford to purchase a new home by next summer.
The report surveyed more than 1,500 online Canadians in French and English this past June. Here’s what it found.
Related: The Most Affordable Cities in Canada for Solo Homebuyers: Report
Delaying a Move
Even though the Bank of Canada has cut the key interest rate twice so far this summer (and for the first time since March 2020), people are still weary of making big decisions like a house or condo purchase. Overall, 94 per cent of surveyed Canadians said they have no plans to move over the next year. Adults aged 35-54 were particularly cautious and the least likely to move given their current financial circumstances.
Canadians may not want to make any big purchases over the next year, but they’re okay with investing in their current homes. The report found that 53 per cent of homeowners want to complete home renovations that will improve their homes’ functionality. People living in Manitoba were the most likely to renovate in the next year: 65 per cent of homeowners want to complete a renovation by next summer to increase their homes’ value.
Related: How the Bank of Canada Interest Will Affect Home Buyers in 2024
Investing in the Home
Overall, 37 per cent of respondents said they wanted to remodel their kitchen, bathroom or basement. Another 24 per cent of Canadians want to landscape and 17 per cent hope to replace windows or doors.
Canadians are also interested in energy-efficient upgrades and finding ways to save money through those renovations. According to the report, 62 per cent of homeowners are likely to invest in renos that will save on future utility costs. Atlantic Canadians are the most likely to invest at 71 per cent.
“With the very high current cost of living burdening so many Canadians, we’re seeing a notable shift in homeowner behavior,” Michael Garrity the executive chair of Financeit, said in a statement.
“More and more Canadians are choosing to stay where they are, and instead invest in renovating their current homes rather than moving to a new one. We understand that enhancing one’s current living space can be a more economical and satisfying option in the long run.”
