Welcome to the fourth annual HomeStars Reno Report!

Now in its fourth year, our Reno Reports are designed to gauge Canadian homeowner behaviours and sentiments towards renovations, spending, trends, and more. This year, similar to our 2021 report, we surveyed Canadian homeowners who had completed home renovations in the past year to better understand how behaviours and attitudes have shifted as many national and regional pandemic restrictions have eased in the last year.

After a tumultuous year for Canadian homeowners who were impacted by the continuation of a global pandemic, a record-breaking hot national real estate market, inflation, and economic uncertainty, our newest survey revealed that now, more than ever, Canadian homeowners, on average, have been investing more of their cash on hand into home renovations – a trend that is still expected to increase over the next 12 months despite economic concerns.

We saw that the largest investments were made inside homes; on average, homeowners who completed renovations in the past 12 months spent about $13,000, with outdoor renovations following at about half the spend, with an average of $6,600 to enhance outdoor living.

When it came to funding their renovation projects, 80 per cent of homeowners surveyed reported paying for their projects with cash on hand or savings for the second year in a row.

Even with more cash on hand, the rising cost of building materials encouraged some homeowners to postpone planned renovations – 41 per cent chose to pause their plans. However, when asked about their renovation plans for the next 12 months, 75 per cent of homeowners indicated they plan to go ahead with renovations.

Since this survey was conducted in March, inflation continued to rise, interest rate hikes were introduced by the Government of Canada, and housing prices held or even began to decline in some parts of the country. Due to these changes, we contacted 985 Canadian HomeStars clients in June to get a pulse check on whether or not the current market showed a different result from our original survey. Despite the noted volatilities, we were surprised that 53.6 per cent of Canadians surveyed still planned to move forward with home renovations.

Nationally, homeowners who plan to upgrade their spaces in the coming year said they’ll be spending an average of $25,222, nearly double what they spent on average over the past 12 months.

Read on for more fascinating details on how much was spent, top projects, regional differences, fantasy renovations, and looking ahead to the next 12 months. Enjoy!

Along with increased spending, most homeowners intend to stay put and reinvest in their homes rather than sell and buy, although the proportion who are considering a move actually increased from 2021 to 2022. Three-in-four (76 per cent) of those surveyed reported that they are not considering moving in the next 12 months, a drop compared to 2021, where 91 per cent of those surveyed had no plans to move homes throughout the year. With the pandemic easing and fluctuations in the housing market, it’s unsurprising that Canadians want to stay put and reinvest in their homes. In our initial survey, 56 per cent of surveyed homeowners were planning to stay in their current homes and renovate over the next 12 months. According to our pulse check of HomeStars homeowners in June, we found that 84 per cent of homeowners surveyed are planning to stay put.

Regardless of a shift in restrictions across the country, the pandemic continued to influence homeowner behaviour, with 40 per cent of respondents saying the presence of COVID-19 restrictions influenced their decision to renovate, an eight percentage point increase from those surveyed the previous year.

Our survey shows that Canadians have more time and money on their hands and have continued to invest in their homes over the past 12 months despite other economic pressures. It’s evident that Canadians are seeing a return on investment with their home renovations, indicating they plan to spend even more time and money renovating more extensively over the next 12 months. Though we thought current market conditions would ultimately deter Canadians from completing expensive home renovations, we saw a consistent average of more than $25,000 in planned spending for home renovations in the next 12 months.

Interior painting continued to be the most common renovation project undertaken by homeowners, with 43 per cent who completed a home renovation doing so. Exterior landscape design remained at the top of the list again for outdoor projects completed over the past 12 months, with 29 per cent.

When it came to completing renovations, slightly more than half of surveyed homeowners said they attempt to complete some renovations themselves to reduce overall project costs.

Regardless of the size and scope of homeowner renovations over the past 12 months, the sheer volume of renovation projects continued to grow and looks to be riding an upward trend. I welcome you to read on to learn more about homeowner renovation motivations, trends, and influences during this incredibly unique time.

From our home to yours,

Shir Magen
Shir Magen
CEO of HomeStars

Key Findings
When we first surveyed Canadian homeowners in the early Spring, 80 per cent of Canadians had cash on hand for home renovation projects. Our follow up pulse survey to HomeStars customers found a slightly lower proportion of Canadian homeowners with cash on hand, as 27 percent of respondents from this survey reported needing help with financing.
Two-in-five (40 per cent) surveyed homeowners say the presence of COVID-19 restrictions influenced their decision to renovate in the past year, a significant increase from 2021 (32 per cent).
At the same time, more homeowners also report postponing planned renovations this past year due to high building material costs (41 per cent, up from 35 per cent in 2021).
Amongst those who have completed outdoor renovations (e.g. landscaping/yard improvement projects) in the last 12 months, the average spend was about $6,600, an increase of nearly $2,000 from last year.
The increase in average spending for indoor renovations was even more significant: Canadian homeowners who completed such renovations in the last 12 months spent about $13,000 on average, up from $8,260 last year.
There are notable regional differences when it comes to home renovations, both in terms of specific projects undertaken and overall spending levels. Ontarians, for example, have spent roughly twice as much on outdoor projects on average than homeowners in the Prairies and Atlantic Canada.
59 per cent of the Canadian homeowners stated the top reason to renovate was to refresh the look and feel of their space.
Looking Ahead
The expected average spend for the next 12 months is nearly twice the amount of 2021, suggesting that many Canadians expect to scale up home renovations in the months ahead. Our June survey of HomeStars customers demonstrated the same trend of doubling spend from the amounts reported in 2021.
75 per cent of surveyed homeowners who completed renovations in the past 12 months expect to do so again in the next year.
Investing Indoors
Outdoor Living

Funding Canada’s Renovation Trends

When Disaster Strikes

Getting Smart & Going Green
A Canadian Fantasy
Homeowner Mobility
Finding the Help Homeowners Need

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