The pandemic gave people time to give their houses a new look. With everyone staying inside their houses doing work from home and taking online classes, homeowners see the need to invest in home renovation projects to accommodate private spaces needed by everyone in the family. The home renovation craze In Canada started during the pandemic and still going strong, in fact booming, in the year 2021.
Increasing Investment in Home Renovation Projects
According to Simply Group, loan applications for home renovations such as roofing, windows, and doors have increased by 36% from the first quarter to the second quarter of 2021. Quebec records the highest percentage change in home improvement loan applications with a 96% increase followed by Alberta with a 40% increase and Ontario with a 12% increase. This increase in loan applications suggests that homeowners really invest in home improvement projects. The 2021 Reno Report released by HomeStars further supports this argument saying that 81% of homeowners have cash on hand to spend on home improvement projects.
The year of the pandemic is not only the year of Tiktok dance trends and Dalgona coffees, it’s also the year of DIY home improvement trends with homeowners uploading their home improvement videos online starting a craze for other homeowners to follow. This could be the reason behind the increasing investment in home renovation projects.
Reasons for Home Renovation Projects
The Re/Max 2021 Renovation Investment Report states that 29% of homeowners in Canada chose to renovate their houses for aesthetic purposes. With people spending most of their time inside their houses, they can’t help but notice everything wrong inside the house. With so much time in hand, homeowners see the pandemic as a time to finally do long-needed home renovations. The report also says that 29% did renovation projects for safety and maintenance. This is not surprising at all with the pandemic requiring social distancing and private spaces for people to continue their work at home.
Renovation Trends in Canada
In the report released by Sotheby’s International Realty Canada as cited in Canadian Real Estate Wealth, the most common home renovations in Canada involve both outdoors and indoors improvements. Indoor renovation projects include landscaping or gardening, outdoor dining areas, theaters, waterfront docks, pools, ball courts, and playgrounds for children. Indoor renovations include kitchens, personal fitness areas, and home offices. Notice that most of the renovations are driven by the pandemic. Basically, the boom in the home improvement industry is caused by the pandemic.
“We’ve seen such an uptick in home renovations in 2021 as the economy opens back up and people are looking to up the value of their homes” said Jess of Homeservice Club of Canada
The Future of Home Renovation for Canada
With the pandemic nearing its end, what would then be the future of home renovation look like in Canada? Will the trend continue or will the percentage of home improvement loan applications decrease? Simply Group argues that loan applications for home improvement projects will continue to increase especially with the winter fast approaching. They support this argument with the continued increase that they have recorded in home renovation loan applications in the past years.
HomeStars also believe that the increase in home improvement projects will continue in the next year with their 2021 Reno Report saying that those who did renovations in the year 2021, 77% plan to do interior renovation while 51% of them plan to do exterior renovations in the next 12 months and they plan to spend the same amount for home renovations as much as they did in 2021.