More than half worry they will overspend, yet only one third
have a detailed budget
TORONTO, June 22, 2016 /CNW/ - A new poll by CIBC (TSX:
CM) (NYSE: CM) finds that Canadians homeowners planning to renovate
expect to spend an average of $13,000
on home improvements this year as the renovation focus shifts to
the outdoors, such as building or repairing decks and patios and
landscaping yards and gardens. But, many homeowners worry they will
overspend (52 per cent cite as key irritant).
Key poll findings include:
- 37 per cent of Canadian homeowners plan to renovate or
improve their home this year, down from 40 per cent in 2015.
Among those who plan to renovate this year:
- $13,017 is the average
amount they plan to spend, up from $12,293 in 2015
- Landscaping, including decks and patios, is a focus for 42
per cent (2015: 25 per cent)
- 54 per cent plan to do basic maintenance, compared to
55 per cent in 2015
- Indoor renovations are less of a priority:
- 33 per cent look to renovate bathrooms versus 40 per
cent in 2015;
- 26 per cent plan to update kitchens, down from 31
per cent in 2015
"The poll findings show that Canadians are focused on outdoor
projects," says Scott McGillivray,
host of HGTV's Income Property. "Spending more on the outdoors may
not necessarily be the first option when it comes to return on
investment, however you should never underestimate the value of
curb appeal. If you've already taken care of the big hitters inside
the home and have the renovation funds, why not turn your attention
to outdoor projects?"
Biggest worry is overspending
While more than half (52 per cent) of homeowners say
their biggest concern is going over budget, only a third (34 per
cent) say they actually have a budget for their upcoming
project.
"Whether you hire a contractor or do it yourself, you should
have a good understanding of how much your project will cost and
build in a contingency for potential overruns or surprises," says
Barry Gollom, Vice President,
Mortgages & Lending, CIBC. "It's critical to stay on budget as
it is easy to lose control of your spending if you don't have a
detailed and comprehensive plan."
For those planning renovations this year, CIBC offers a Home
Renovation Checklist that provides homeowners with valuable tips
and advice to keep their project on track.
Key poll findings
Percentage of Canadian homeowners who plan to renovate in the
next 12 months:
|
2016
|
2015
|
National
|
37%
|
40%
|
Canadian homeowners who plan to renovate: Amount they plan to
spend
(average amount and dollar range)
|
2016
|
2015
|
Average
amount
|
$13,017
|
$12,293
|
$1 to
$4,999
|
27%
|
23%
|
$5,000 to
$9,999
|
20%
|
20%
|
$10,000 to
$14,999
|
15%
|
16%
|
$15,000 to
$24,999
|
9%
|
11%
|
$25,000 or
more
|
10%
|
9%
|
I don't
know
|
19%
|
21%
|
Canadian homeowners who plan to renovate: Top five planned home
renovations: (multi choice):
|
2016
|
2015
|
Basic maintenance
(including painting, flooring, general repairs, replacing
appliances)
|
54%
|
55%
|
Landscaping
(including outdoor deck, patio, driveway)
|
42%
|
25%
|
Bathroom
renovations
|
33%
|
40%
|
Kitchen
renovations
|
26%
|
31%
|
Replacing windows or
doors
|
23%
|
28%
|
Canadian homeowners who plan to renovate: Top five irritants
regarding home renovations:
(multi choice)
Going over
budget
|
52%
|
Project takes longer
than expected
|
48%
|
Disruption to my
household
|
38%
|
Reliability of
contractors
|
33%
|
Starting a project
and never finishing
|
25%
|
Canadian homeowners who plan to renovate: Whether they have a
budget
|
Yes
|
No
|
I don't
know
|
Do you have a
detailed budget for your upcoming renovation?
|
34%
|
62%
|
4%
|
Poll Disclaimer
From May 19 to
25, 2016, an online survey was conducted among 2,129 Angus
Reid Forum panelists who are Canadian adult homeowners. The margin
of error - which measures sampling variability - is +/- 2.1 per
cent, 19 times out of 20. The results have been statistically
weighted according to education, age, gender and region Census
data. Discrepancies in or between totals are due to rounding.
Comparisons to CIBC's new release "Home renovation budgets down
for Canadians in 2015: CIBC Poll" on May 8,
2015, are not possible due to a change in methodology.
About CIBC
CIBC is a leading Canadian-based global
financial institution with 11 million personal banking and business
clients. Through our three major business units – Retail and
Business Banking, Wealth Management and Capital Markets – CIBC
offers a full range of products and services through its
comprehensive electronic banking network, branches and offices
across Canada with offices in
the United States and around the
world. Ongoing news releases and more information about CIBC can be
found at www.cibc.com/ca/media-centre/ or by following on Twitter
@CIBC, Facebook (www.facebook.com/CIBC) and Instagram @CIBCNow.
SOURCE CIBC - Consumer Research and Advice