The home market in 2016 was a rollercoaster. Canadian homeowners saw home prices rise in metropolitan areas while mortgage rules tightened. Economists have theorized that the 2016 housing market may have inspired Canadian homeowners to increase their spending on home renovations. Canadian economists also predicted that strong demand and low supply would signal homeowners to renovate rather than buy.
The TrustedPros Team has mined data that reveals micro details about these theories. We've collected data from over 2 million users regarding budgeting habits, home renovation trends, and contractor expectations. Although we are not sure how much money Canadians have spent on home renovations for the year, we do know about how homeowners planned to spend their money in 2016.
How does the home renovation sector data impact homeowners and businesses?
Renovating to sell or stay?
Bathroom remodeling projects were the most popular home renovation of 2016. They comprised 19% of all home renovations last year. This could signal one of two things: homeowners are investing in their homes in hopes of reselling in the future, or they are renovating to improve their quality of living. Bathroom renos have one of the highest returns on investment (between 70 100%). However, bathroom renovations can cost between $150 - $250/ft2, making them one of the most expensive home improvement projects per square foot.
Contractors better step up their game
We've learned that homeowners were very serious about star ratings, although they weren't necessarily looking for absolute perfection. In 2016, 44% of homeowners said that they were only willing to hire a contractor who was rated above 3.5 stars. Moreover, 19% of homeowners were interested in hiring contractors with a 4-star rating and above. This means that contractors ought to step up their game and online presence if they are going to keep up with the high demand for renovations coupled with rising quality and service consumer expectations.
Homeowners may need a renovation reality check
Ontarians, British Columbians, and Quebeckers were ready to set the highest budgets for home renovations in Canada; however, TrustedPros believes that all Canadian homeowners ought to focus on setting realistic budgets for their home renovation projects. We have noticed that homeowners tend to underestimate project costs in relation to industry standards on average. This year, we found that only 20% of homeowners set realistic budgets for kitchen renovations, which were the sixth most popular project in the country.
28 Stats that Reveal Micro Details about the Home Improvement Trends of 2016
- 9% of home renovations were painting projects.
- 60% of Canadian homeowners had realistic budgets for roofing renovations.
- 19% of home renos this year were bathroom renovations.
- Only 20% of Canadian homeowners had realistic budgets for kitchen renovations.
- 2% of home renovations were garage construction projects.
- 15% of home renos were basement renovations.
- 13% of home renos were deck constructions.
- Ontario made up 58% of all small home improvement projects in Canada this year, being the largest contributor in Canada.
- B.C. homeowners contributed to 17% of all home renos in Canada.
- Alberta homeowners contributed to 15% of all home renovations.
- PEIslanders contributed to 1% of all home renos.
- 9% of homeowners say that they will hire contractors with a 3.5-star rating and above.
- 19% of homeowners say that they will hire a contractor with a 4-star rating and above.
- 16% of homeowners say that they will hire a contractor with a 4.5-star rating and above.
- On average, Canadians are willing to wait 28 days before they begin a renovation.
- 14% of home improvements included multiple renovations.
- Outdoor home improvement projects comprised 25% of all home projects (deck building was the most popular).
- Indoor home improvement projects comprised 54% of all home projects (bathroom renovations were the most popular).
- Structural projects comprised 9% of all home projects (home addition renovations were the most popular).
- On average, Canadians hire home improvement contractors within 19.25 KM of where they live.
- Ontario comprised 64% of all small home improvement projects in Canada this year, being the largest contributor in Canada.
- PEI comprised 1% of all small home improvement projects, being the smallest contributor.
- Electrical projects were the most popular small home improvement project comprising 14% of all small home improvement projects.
- Plumbing projects were the fourth most popular small home improvement project comprising 8% of all small home improvement projects.
- Garage door projects were the least popular home improvement project, although Garage builds were the 20th most popular project of 2016.
- Quebeckers budgeted the 3rd most for renovation and home improvement projects this year.
- Ontario homeowners budgeted the 2nd most for renovation and home improvement projects this year.
- BC homeowners budgeted the most for renovations and home improvement projects in Canada this year.