CALGARY — Canadians spent $23 billion on renovations in 2010 and a survey of the country’s major metropolitan areas says Calgary households were the least likely last year to do work on their homes.

The Canada Mortgage and Housing Corp. Renovation and Home Purchase Survey, released Wednesday, said an estimated 1.9 million households, surveyed in 10 major centres, indicated they completed renovations last year, a slight decrease from the 2.1 million households that completed a renovation in 2009.

This represents 42 per cent of homeowner households, down from 50 per cent in 2009. The average cost of renovations was $12,972, up from an average of $12,100 in 2009.

Bob Dugan, chief economist for the CMHC, said when Canadian homeowners were asked about their renovation plans for this year, 39 per cent indicated they intend to spend $1,000 or more by the end of 2011.

Of the 10 major surveyed centres, the highest percentage of homeowner households that renovated in 2010 was in St. John’s at 48 per cent, followed by Halifax and Ottawa (47 per cent each) and Winnipeg (46 per cent). The centre with the lowest proportion was Calgary at 39 per cent.

Richard Cho, senior market analyst in Calgary for the CMHC, said the decline in renovations in 2010 can be attributed to a number of factors.

“The recent economic downturn has been reflected in slower rates of economic growth including slower rates of residential investment activity,” he said. “Tax credits have also impacted renovation activity, but they are only one of many factors that encourage renovations.For example, the level of existing home sales can also have an effect on renovation expenditures.”

Renovation intentions for 2011 are highest in St. John’s, where 50 per cent of consumers indicated they plan to undertake renovations costing $1,000 or more. This is followed by Halifax (44 per cent) and Ottawa and Winnipeg (43 per cent each). The proportion of potential renovators is lowest in Montreal (37 per cent) and Toronto and Quebec City (both at 38 per cent).

On the home purchasing front, six per cent of all households indicated they bought a home in 2010, unchanged from 2009. The largest share of homebuyers was in Winnipeg, Ottawa, Halifax and St. John’s (all at seven per cent). The lowest share of homebuyers was in Vancouver, Toronto and Montreal (five per cent each).

Overall, the share of households that intend to buy a primary residence in 2011 is four per cent. Home buying intentions are strongest in Vancouver, Calgary, Winnipeg and Ottawa (all at five per cent). Purchase intentions in all other areas are four per cent, added the CMHC.

mtoneguzzi@calgaryherald.com
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