94% of Canadian homeowners plan to stay put amid high living costs, opt for renovations

The vast majority of Canadian homeowners (94 per cent) plan to remain in their current homes for at least the next year, a report by Angus Reid and Financeit finds. Nearly a quarter of them note the higher costs of living as their reasoning.

Despite the Bank of Canada’s interest rate cut in June, increased living costs are still holding people back from large financial decisions like purchasing a new home. 30 per cent of those aged 35-54, the most cautious group, are resistant to moving because of this.

Renovations: A nice alternative

The report also found that 25 per cent of those who won’t move plan to renovate their homes within the next year.

“With the very high current cost of living burdening so many Canadians, we’re seeing a notable shift in homeowner behavior,” says Michael Garrity, executive chair of Financeit Inc. Canada. “More and more Canadians are choosing to stay where they are, and instead invest in renovating their current homes rather than moving to a new one. We understand that enhancing one’s current living space can be a more economical and satisfying option in the long run.”

As for their renovation goals, 53 per cent of homeowners wish to improve their home’s functionality, with Ontario homeowners the most likely to do so at 63 per cent.

21 per cent are looking to renovate to increase the value of their home, with 65 per cent of Manitoba homeowners looking to renovate for this reason. 37 per cent of those looking to renovate in the next year plan to remodel their kitchen, bathroom or basement, 24 per cent would like to landscape and 17 per cent will replace windows and/or doors.

Energy-efficient upgrades

The report also found that Canadians are looking for innovative ways to save money through renovations, with 62 per cent of homeowners likely to invest in energy-efficient renovations to save on utility costs.

Homeowners in Atlantic Canada were most likely to invest in energy-efficient upgrades, at 71 per cent.

View the survey results in more detail here.