No slowdown in the renovation market 

Despite signs the real estate bubble is bursting, Quebecers’ intentions to renovate remain stable again this year as this appears to be the most attractive option for Quebec homeowners.

The third annual renovation intentions survey, conducted jointly by RenoAssistance, which is now part of the EspaceProprio ecosystem, and the Association des professionnels de la construction et de l’habitation du Québec (APCHQ), reveals that as many Quebec homeowners as ever are still interested in undertaking home renovations. As many as two-thirds (66%) of them believe they are likely or very likely to carry out at least $5,000 worth of renovations within the next three years, a similar result to that witnessed in 2023 (65%) and in 2022 (66%).

Renovate rather than buy!

In a real estate market not as favourable for buyers right now (low inventory and high interest rates), renovating is a more attractive option for many homeowners. So, three out of four (76%) Quebec homeowners are more likely to undertake renovations than purchase a new property (24%) to meet their housing needs. It’s worth noting that this penchant for renovation becomes more pronounced as we get older. 

A decision in the works for a while

When it comes to the catalyst for undertaking a renovation project, we observe 41% of respondents noted that the idea of taking the plunge was far from a whim – it had been considered for a long time. Conversely, more than a quarter of those surveyed (28%) had their back to a wall: faced with an inconvenient situation where something broken, dated or damaged forced them to act quickly. And then there was the 25% of respondents who felt that the status quo was no longer an option and decided to renovate their property to their liking rather than put it up for sale.

Hard to ignore the economic situation

While the current economic climate is not affecting renovation budgets, it is having an impact on the renovation market. One out of two people polled (50%) expressed concern about their project in the current climate, a sign of the decreasing confidence of Quebec homeowners. It should be noted that at least 53% of them believe the current circumstances may require them to postpone their project and 42% are thinking about scaling back the scope of their project.

Survey says… homeowners prefer dealing with licensed contractors

According to homeowners who plan to carry out work, using a licensed contractor remains the preferred route to take (57%), a choice largely justified by the guarantee of the quality of work (74%) associated with it. In this regard, by leveraging its network of dependable contractors, RenoAssistance can provide its customers with a level of expertise that meets their expectations.

Consulting the RenoAssistance website (23%) was once again among the three most frequently used sources for finding licensed construction contractors, behind word-of-mouth (48%) and Google searches (25%).

We also observed that general reputation (61%) was the most important criterion for choosing a contractor, ahead of price (43%) and availability (33%).

Types of renovation: interior work still far ahead

Interior renovation work (75%) is still the most popular year after year among those wanting to renovate, while interest isn’t as keen for exterior renovation work (46%) and expansion or conversion projects (8%). Though we’re seeing a slowdown compared to last year (53%) for exterior work, intentions are stable for interior or conversion work.

Refinishing or replacing flooring (28%) tops the list of most common interior improvements, followed by major (27%) or minor (23%) bathroom renovations. As for the kitchen, major renovations hold steady (22%), while minor renovations lose some ground (16% compared to 23% in 2023).After the kitchen and bathroom, the basement (25%), bedrooms (14%), family room (8%) and laundry room (7%) are among the rooms most likely to be renovated.

Talking about exterior improvements, work on the deck, balcony or patio (37%) remains the most popular to undertake. This is followed by, in order of importance, replacing windows and doors, landscaping, roofing and exterior siding for more than one in five respondents in each case.

No cuts to renovation budgets

The average amount that homeowners surveyed expect to spend on their renovations this year is $34,000 in total: $24,000 for interior renovations, $21,000 for exterior work and $79,000 for expansion or conversion. This is an upward trend since we last measured the cost of renovation work and despite the financial pressures now facing Quebec households.

The vast majority of those who intend to carry out renovation work are able to put money aside to do so. Personal savings remain the most common source of financing for renovation projects (76%) ahead of a homeowner line of credit (20%) and mortgage refinancing (9%).

Lack of awareness about renovation grants and rebates

Among the main motivating factors noted for undertaking renovations, aesthetic reasons (62%) stand out, as well as making the living space more functional (49%). Maintenance (46%), increasing market value (43%) and repairs (39 %) are also regularly mentioned. 

Despite the existence of many grants and rebates to carry out green renovations, improving energy efficiency is a motivation for only 23% of homeowners intending to renovate. In fact, a noteworthy percentage of Quebecers (39%) are still unaware of what assistance programs are available to them to do sustainable renovations

At any rate, it is encouraging to see today’ unfavourable economic climate doesn’t really appear to have dampened homeowners’ enthusiasm for home renovations. Though embarking on renovations seems to be the most interesting option for many, it all boils down to finding a dependable contractor to bring their project to life.

 

Survey methodology

The Ad hoc Recherche web panel survey was conducted from December 6 to 13, 2023, on behalf of RenoAssistance, which is now part of the EspaceProprio ecosystem, and the APCHQ, among 1,016 Quebecers aged 18 and over who own at least one property and intend to do at least $5,000 worth of renovations or maintenance over the next three years. Renovation projects were divided into three categories, including interior renovations, exterior renovation work and expansion or conversion work.