Why The Home Renovation Market Is Growing
The headline might surprise some, given that they’ve now come to believe that people aren’t spending as much as they used to on housing — whether it’s buying, renovating or adding to houses. While a part of it might be true — the number of homeowners keeps going down with each generation. Forecasts focussing on renovation and home addition, however, look positive, whether it’s small scale do-it-yourself projects or professional remodels.
The biggest indicator is the strong growth of home improvement retail stores — at almost double the rate of growth of the rest of the retail sector. Although there’s a entire system that’s in the works behind that forecast, we’ve attempted to simplify some of the factors for you:
- As homeowners’ equity builds up, they’re encouraged to invest more into their homes for better returns. Home addition projects have boomed as a direct result of the increased returns homeowners are now getting.
- Another factor (of the type that sounds obvious as soon as you hear it) is that homes everywhere are getting old. Home renovation and addition then become the next choice for those looking to spruce up their abodes.
- New buyers are leaning towards personalization. Most millennials and those from Gen X who’re now homeowners (although the percentage is still low when compared to boomers) renovate their homes after moving in.
The driving factor behind why home renovations are getting popular amongst new homeowners might be that owners are now perceiving it as more than just an effort toward maintenance — it’s now a lifestyle change, evident from the fact that lofty projects, costing upwards of $250,000, are now common.
- Another surprising demographic that takes up home renovation is the one that wishes to move but can’t, due to a myriad of reasons — from financing to a shortage of housing in metropolitans. The rationale behind the statement is that as renovating is cheaper, it is favoured by those who’re ‘bored’ of their homes. It’s not surprising then to know that the renovation industry is larger than the new home construction industry.
Evidently, this surge in home renovation projects is a result of changes in the housing market in Canada, along with a significant change in the behaviour patterns of homeowners.
In Toronto, there’s an added feel-good factor for those who opt for home renovation — most renovation businesses are small-to-medium in size and pay around 9 billion in wages. Contributions from most home addition and renovation projects thus aid in strengthening the local economy and housing landscape.
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Dan is happy to meet with you, listen to your ideas and provide you with a free site quotation no matter where you are in the renovation decision process. No charge…with no pressure, no obligation and no strings attached. We promise. We simply want you to have all the information you need to make the best decisions related to your Toronto home renovation or addition.
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