It is obvious that the housing market is booming, but did you know that there is a renovation boom happening too? Last year alone, Ontario residents spent over $25 billion on home renovations. What is promoting this boom, and should you consider renovating, too?
Hot Market, More Renovations
There is no question that the renovation boom is directly correlated with the hot housing market. Since home owners typically undergo some sort of renovation job within the first year of ownership, and more homes are being bought and sold than ever before, the increase in renovation activity is logical.
According to Statistics Canada, the most popular renovation jobs include: basement upgrades, painting, heating and air conditioning, as well as landscaping.
Houses are getting older too, and are requiring more attention. Over 50 per cent of all the homes in the province were constructed after 1980. For some time that meant that the majority of Ontario’s homes did not require too much extra TLC because of their relative newness. Now, many of these homes are at a point where they require structural work and other more serious projects need to be taken on.
Less Empty Nests
Did you know that young people aged 18 to 35 are more likely to be living at home with their parents than any other living arrangement? This is the first time in history that this has been the case. Boomers are buying bigger houses, and making renovations that allow themselves to live comfortably with their adult children. Since a large share of young adults are staying home longer (due to economic and academic reasons), the need for space remains important.
Should You Renovate?
Scotiabank predicts that the amount of money spent on renovations will only grow. The Canadian Mortgage and Housing Corporation expects that Southwestern Ontario will see more renovations due to higher employment, higher housing affordability and continued pent-up demand.
Home renovations are a great way to increase the value of a home for the purposes of selling or renting. A few key renovations can go a long way – kitchen, bathroom and flooring updates tend to increase home values exponentially. Other renovations, such as creating in-law suites or finishing basements are popular for those looking to have income properties.
Renovating can be very rewarding, but can feel like an overwhelming task at times. If you are looking to increase the value of your home or perhaps looking for a change – feel free to call me at 416-921-1112, and I can help get you started!