The Renovation of the Nation

THE RENOVATION OF THE NATION How Are Canadians Revamping their Homes After Recession Now that Canada's economy is finally turning around after the recession and people start regaining the financial confidence to make purchases again, we decided to take a look at the home improvement industry and the factors that fueled its recent growth. Surveys carried out by Houzz & Home and Moen reveal how Canadian homeowners plan to improve and renovate their homes in the near future. $48 billion is the value of the home improvement industry in Canada 80% of homeowners reported the completion of at least one home improvement project or addition in the last year Growing Confidence 65% said they completed several improvement projects within the last year 78% have announced their plans for renovating & improving activities Spending on home renovations per year, by region: $22,000 Alberta $20,400 Manitoba and Saskatchewan $19,000 British Columbia British Columbia Alberta Manitoba Saskat- chewan $13,100 Quebec Quebec Ontario $13,000 Ontario Improving Economy 37% - number of homeowners who say they will delay renovation projects because of the economy in 2013, compared to 53% in 2012 (down 16%) 60% prefer to cut back on vacations and other big purchases rather than decrease home renovation budgets. 55% of homeowners with renovation plans in the next 2 years will hire professional help. Only 34% consider accessing finance options to pay for renovations. Fix or Flee? Canadian homeowners are more likely than their U.S. counterparts to renovate their homes rather than moving, in order to increase its resale value or living comfort. 60% said they renovate to increase home value (versus 54% in the U.S.) 48% said they renovate in order to improve storage/organization of their homes (versus 42% in the U.S.) Less than half (48%) believe now is a good time to purchase a house (versus 75% in the U.S.) Help Wanted 18% Although the majority of Canadians said they prefer to take a hands-on approach when it comes to remodeling projects, they do, however, recognize the need of hiring professional help. 21% 61% In the last five years, Canadians resorted to the help of: 24% 61% General contractor 50% Carpet and flooring professional 30% Kitchen and bathroom professional 30% 50% 24% Interior designer 21% Landscape professional 18% Architect When hiring contractors, most homeowners look at good reviews (81%), area of expertise (70%), good personality (67%), similar projects completed (59%) and cost of services (8%). The Kitchen, Highlight of the Canadian Home For homeowners who are making improvements with an eye toward improving the house resale value, the kitchen renovation is top priority. 50% plan to remodel their kitchen in the next two years $23,300 average cost to upgrade kitchen cabinets, countertops, appliances and workspace. Popular Design Trends According to the 2013 NKBA Design Trends Survey, these are the most popular trends in the U.S. and Canada: Finishes Light finishes 30% Medium finishes 54% Dark finishes 55% Glazed finishes 48% LED Lighting 70% in 2012 Glass Backsplash to 77% in 2013 42% in 2010 to 64% in 2013 Faucets Touch-activated 32% Pull-out 94% Pot-filler 33% Faucet Finishes Satin nickel 60% Bronze 50% Polished nickel 20% White Painted Cabinetry 47% in 2011, 59% in 2012, 67% in 2013 (popularity increased) Color It Pretty White and off-white, top options 73% in 2013, up from 67% in 2012 Gray color schemes 55% (in 2013, Style Options up from 9% in 2010) Transitional 67% Traditional 60% Contemporary 53% Important: The National Kitchen & Bath Association recommends not to spend more than 15% of the house's market value on kitchen and bathroom renovation projects in order to get the best ROI. Top Five Hot Trends in Home Improvement in 2013 Home Hardwood kitchen floor Laundry room on main floor Built-in kitchen Kitchen theatre appliances island Top Five DIY Projects with Best ROI 1. Replace carpeting with laminate 50%-75% 2. Install new light fixtures 60%-70% 3. Landscaping 25%-50% 4. Update the entryway 50%-75% 5. Build a fence 50%-75% House for Sale: Smart Renovation Tips It's smart to revamp the appearance of your house when you're thinking of selling it, but not all improvements will bring the price up. Here are some renovation tips offered by the Appraisal Institute of Canada (AIC) to help you get most bang for your buck: Less is More. Consider the value of your house, your neighborhood and the expectation of potential buyers when planning your next renovation project. Over-improvements will most likely not pay off. Improve Once, Enjoy Forever. Consider adding energy-efficient improvements, such as HVAC systems and windows that will require little or no maintenance for the next 10 to 15 years. Consider the Value, not the Price. Try not to underestimate the value of inexpensive renovations such as a fresh coat of paint, new lighting fixtures, updated door handles and landscaping, which can give your home fresh feel for a very low cost! Green is the Way to Go. Energy-efficient renovations have one of the highest payback potential. You'll recover your initial investment and decrease operating costs over time. Not to mention bringing your contribution to the saving of the planet! Professionals Know Best. Hire a professional painter, a general contractor or an architect to help you draw plans, assist in construction or offer precious renovation advice. Professional help is not an expense, but an investment that will significantly increase the quality and value of your improvements. Sources http://www.marketwired.com/press-release/canadians-are-spending-more-on-home-improvements-nyse-fbhs-1819038.htm http://www.newswire.calen/story/1149839/cibc-poll-canadian-homeowners-spending-15-000-on-average-for-home-renovations-in-2013 http://www.businesswire.com/news/home/20130409005523/en/Canadian-Homeowners-Bullish-Home-Renovation-Year-Houzz http://www.aicanada.ca/wp-content/uploads/Renovation-Tips-Appraisal-Insititute-of-Canada-April-20131.pdf http://www.styleathome.com/homes/renovating/return-on-renovation-costs-how-much-will-you-get-back/a/882/2 http://www.nkba.org/ http://www.nkba.org/Press/Releases/2013/NKBA_Reveals_Top_10_Industry_Trends_for_2013.aspx Brought to you by Renaissance Painters