TORONTO, September 27, 2016 — Ontario’s renovation spending is set for additional growth, according to Canada Mortgage and Housing Corporation’s (CMHC) latest Housing Market Insightreport.
Current estimates suggest that the average homeowner equity in Ontario has grown by 14 per cent since 2012i. Most of this growth in home equity is concentrated among aging households. When rising prices boost home equity, households feel wealthier and thus are encouraged to invest in their homes.
- Ontario home renovation spending represents a growing share of the province’s economy;
- Higher end alteration and improvement projects make up the bulk of spending;
- Aging households are behind much of the spending in recent years with more spending to come;
- Vibrant resale market, aging rental and ownership stock and growing home equity wealth will support Ontario’s renovation market; and,
- Southwestern Ontario has the biggest potential for growth, while the GTA has the least.
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As Canada’s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.
“Although the average growth rate of home renovations is not likely to match that of the last couple of decades, the province is still set to see an increase. Ontarians are aging, the housing stock is aging, home prices are on the rise and more homebuyers are turning to the resale market — all these factors support renovation spending.”
Information on This Release:
i Equifax Canada Data, 2012-2016, Stats Canada and Canadian Real Estate Association (CREA).
Average Home Equity by Age (2012$) — Ontario
Source: Statistics Canada SFS, Equifax, CMHC calculations
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