Canadians are willing to pay more to make
their homes eco-friendly
TORONTO, Nov. 28,
2024 /CNW/ - As interest rates continue to decline,
poll findings show that renovations serve both practical and
personal purposes, with over three in five (63%) Canadians
driven by ambition to create a home to their taste and a desire to
increase property value.
Nearly half of Canadians (49%) are in the process of
planning, executing or have recently completed home improvements.
Homeowners are reporting higher expenditures, with an average
expected renovation cost of $19,000 which is nearly double the reported
spend in 2019 ($10,000).
Over half (57%) have paid or plan to cover costs using cash
or personal savings, with 49% having a detailed, budgeted
plan in place and 80% expressing confidence in their budget,
timeline and scope.
"Despite rising costs, Canadian homeowners are investing
significantly in practical upgrades to their homes right now, with
60 per cent choosing to renovate instead of selling their homes,"
says Carissa Lucreziano,
Vice-President, Financial Planning and Advice, CIBC. "Our results
show that a quarter of renovators are consulting, or expecting to
consult with a financial advisor in advance of their project, to
help them create a plan, a budget and also manage any unexpected
costs along the way."
Three quarters of Canadian renovators have reported
making compromises to reach their desired renovation goals,
including being inconvenienced, reduced leisure and family
time, cutbacks in discretionary spending and incurring higher
renovation costs. Over half (59%) of Canadians are
willing to pay more for a renovation that makes their home more
environmentally friendly, and 73% of Canadians who have
completed renovations or are planning them in the coming year say
they are interested in incorporating smart, sustainable and/or
energy efficient technology.
Other key findings include:
- Top five renovations undertaken by homeowners in the past 12
months:
- Small upgrades and renovations (painting, general repairs
etc.): 46%
- Bathroom upgrades or additions: 39%
- Flooring upgrades: 32%
- Kitchen upgrades or remodels: 27%
- Basement finishing: 26%
- Around four in 10 (41%) renovators cite cosmetic reasons
as the purpose of the renovation, followed by functionality
(39%), address wear and tear (39%), and to increase
the home value (27%).
CIBC has a variety of online tools and resources to help
Canadians through the renovation and upgrading process:
- CIBC's loan and line of credit calculators are tools you can
use to gauge how much you can borrow to put towards desired
renovations.
- The CIBC Home Power Plan - using the equity in your home,
you can combine a line of credit and a mortgage in order to
consolidate all of your personal credit under one low-interest and
secured borrowing solution, which can be adjusted to help fund your
renovation project and meet your future borrowing needs.
- CIBC Smart Planner is an intuitive tool that gives you
timely insights into your spending habits to help you track and
understand your finances better so that you can stay on top of your
goals.
- The CIBC Savings Calculator offers tips on how you can
grow your savings, and reach your home renovation ambitions
faster.
Disclaimer
The findings are from an Ipsos poll conducted between September 18 and September 25, 2024, on
behalf of CIBC. For this survey, a sample of 1,500 Canadians aged
18+ were interviewed online. Sample was sourced from the Ipsos
panel. Weighting was employed to balance demographics to ensure
that the sample's composition reflects that of the adult population
according to Census data and to provide results intended to
approximate the sample universe. The precision of Ipsos online
polls is measured using a credibility interval. In this case, the
poll is accurate to within ±3.1 percentage points, 19 times out of
20, had all Canadians been polled. The credibility interval will be
wider among subsets of the population.
About CIBC
CIBC is a leading North American financial institution with 14
million personal banking, business, public sector and institutional
clients. Across Personal and Business Banking, Commercial Banking
and Wealth Management, and Capital Markets, CIBC offers a full
range of advice, solutions and services through its leading digital
banking network, and locations across Canada, 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.
SOURCE CIBC