Ontario Housing Activity to Fuel Renovations

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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 Insight report.

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.

 
Transcript

Foreground: Ted Tsiakopolous, Regional Economist (Ontario)

Background: Library setting, book shelves

Ted Tsiakopolous: “Although Ontario’s renovation sector will be hard pressed to match the rate of growth registered in the last few decades, we do expect growth moving forward. A number of factors motivate this view: elevated resale market activity, an aging population and rising home prices will remain quite supportive of renovation spending across the province.”

 

Report Highlights

  • 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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“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.”

— Ted Tsiakopoulos Regional Economist, Ontario Canada Mortgage and Housing Corporation

Information on This Release:

Angelina Ritacco
Public Affairs
416-218-3320
aritacco@cmhc-schl.gc.ca

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

CMHC Media Content Available for this News Release:

  • Video Clip — English 12,397 KB)
  • Ted Tsiakopoulos Headshot (115 KB)

Download this Media Package (ZIP – 12.2 MB)

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