More than half worry they will overspend, yet only one third have a detailed budget
TORONTO, June 22, 2016 /CNW/ - A new poll by CIBC (TSX: CM) (NYSE: CM) finds that Canadians homeowners planning to renovate expect to spend an average of $13,000 on home improvements this year as the renovation focus shifts to the outdoors, such as building or repairing decks and patios and landscaping yards and gardens. But, many homeowners worry they will overspend (52 per cent cite as key irritant).
Key poll findings include:
- 37 per cent of Canadian homeowners plan to renovate or improve their home this year, down from 40 per cent in 2015. Among those who plan to renovate this year:
- $13,017 is the average amount they plan to spend, up from $12,293 in 2015
- Landscaping, including decks and patios, is a focus for 42 per cent (2015: 25 per cent)
- 54 per cent plan to do basic maintenance, compared to 55 per cent in 2015
- Indoor renovations are less of a priority:
- 33 per cent look to renovate bathrooms versus 40 per cent in 2015;
- 26 per cent plan to update kitchens, down from 31 per cent in 2015
- $13,017 is the average amount they plan to spend, up from $12,293 in 2015
"The poll findings show that Canadians are focused on outdoor projects," says Scott McGillivray, host of HGTV's Income Property. "Spending more on the outdoors may not necessarily be the first option when it comes to return on investment, however you should never underestimate the value of curb appeal. If you've already taken care of the big hitters inside the home and have the renovation funds, why not turn your attention to outdoor projects?"
Biggest worry is overspending
While more than half (52 per cent) of homeowners say their biggest concern is going over budget, only a third (34 per cent) say they actually have a budget for their upcoming project.
"Whether you hire a contractor or do it yourself, you should have a good understanding of how much your project will cost and build in a contingency for potential overruns or surprises," says Barry Gollom, Vice President, Mortgages & Lending, CIBC. "It's critical to stay on budget as it is easy to lose control of your spending if you don't have a detailed and comprehensive plan."
For those planning renovations this year, CIBC offers a Home Renovation Checklist that provides homeowners with valuable tips and advice to keep their project on track.
Key poll findings
Percentage of Canadian homeowners who plan to renovate in the next 12 months:
|
2016 |
2015 |
|
|
National |
37% |
40% |
Canadian homeowners who plan to renovate: Amount they plan to spend
(average amount and dollar range)
|
2016 |
2015 |
|
|
Average amount |
$13,017 |
$12,293 |
|
$1 to $4,999 |
27% |
23% |
|
$5,000 to $9,999 |
20% |
20% |
|
$10,000 to $14,999 |
15% |
16% |
|
$15,000 to $24,999 |
9% |
11% |
|
$25,000 or more |
10% |
9% |
|
I don't know |
19% |
21% |
Canadian homeowners who plan to renovate: Top five planned home renovations: (multi choice):
|
2016 |
2015 |
|
|
Basic maintenance (including painting, flooring, general repairs, replacing appliances) |
54% |
55% |
|
Landscaping (including outdoor deck, patio, driveway) |
42% |
25% |
|
Bathroom renovations |
33% |
40% |
|
Kitchen renovations |
26% |
31% |
|
Replacing windows or doors |
23% |
28% |
Canadian homeowners who plan to renovate: Top five irritants regarding home renovations:
(multi choice)
|
Going over budget |
52% |
|
Project takes longer than expected |
48% |
|
Disruption to my household |
38% |
|
Reliability of contractors |
33% |
|
Starting a project and never finishing |
25% |
Canadian homeowners who plan to renovate: Whether they have a budget
|
Yes |
No |
I don't know |
|
|
Do you have a detailed budget for your upcoming renovation? |
34% |
62% |
4% |
Poll Disclaimer
From May 19 to 25, 2016, an online survey was conducted among 2,129 Angus Reid Forum panelists who are Canadian adult homeowners. The margin of error - which measures sampling variability - is +/- 2.1 per cent, 19 times out of 20. The results have been statistically weighted according to education, age, gender and region Census data. Discrepancies in or between totals are due to rounding.
Comparisons to CIBC's new release "Home renovation budgets down for Canadians in 2015: CIBC Poll" on May 8, 2015, are not possible due to a change in methodology.
About CIBC
CIBC is a leading Canadian-based global financial institution with 11 million personal banking and business clients. Through our three major business units – Retail and Business Banking, Wealth Management and Capital Markets – CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada with offices in the United States and around the world. Ongoing news releases and more information about CIBC can be found at www.cibc.com/ca/media-centre/ or by following on Twitter @CIBC, Facebook (www.facebook.com/CIBC) and Instagram @CIBCNow.
SOURCE CIBC - Consumer Research and Advice
Image with caption: "Home renovations budgets rise as Canadians shift focus to outdoor projects: CIBC Home Renovation Poll 2016. (CNW Group/CIBC - Consumer Research and Advice)". Image available at: http://photos.newswire.ca/images/download/20160622_C2148_PHOTO_EN_718560.jpg
Image with caption: "Home renovations budgets rise as Canadians shift focus to outdoor projects: CIBC Home Renovation Poll 2016. (CNW Group/CIBC - Consumer Research and Advice)". Image available at: http://photos.newswire.ca/images/download/20160622_C2148_PHOTO_EN_718562.jpg
