In early April, RE/MAX published a 2021 Renovation Investment Report summarizing the home renovation trends in Canada.
During the COVID-19 pandemic, the top reason homeowners were renovating was for lifestyle impact. With everyone spending much more time at home, it’s easy to understand why this has been a trend across the country.
“Despite the trend of home renovations for personal use and enjoyment, 59 per cent of Canadian still said they always consider the return on investment that a renovation will have on their home’s overall market value, so while there is a current renovation trend based on lifestyle aspirations, practically is never far from the surface.”- RE/MAX
Now that we’re over a year into the pandemic, 55% of the survey respondents said that have already done or would like to do a home renovation within the next year. That includes minor renovations like painting.
The report also surveyed RE/MAX brokers across the country to ask them which upgrades yield a high return on investment (ROI). The answer?
- Fresh paint
These home improvements are perfect for the 47% of homeowners who said they would ideally want their home improvement budget to not exceed $10,000 (even if the guaranteed ROI was at least 10%).
For larger upgrades, of the RE/MAX brokers who were surveyed, 65% said that kitchen upgrades yield the highest ROI for sellers. That includes cabinets, countertops and appliances.
87% of brokers listed “kitchen renovations as the top home improvement resonating with buyers in the Canadian real estate market”.
Renovations and Canadian Real Estate: Ontario Market Insights
Here’s what the report had to say about the Ontario real estate market.
Throughout Ontario, RE/MAX brokers are reporting that listings are selling quickly, regardless of their condition or renovation status. Regions including Toronto, Ottawa, Hamilton-Burlington, Niagara, London and Kingston/Napanee saw a strong shift toward outdoor upgrades and amenities in 2020, specifically the addition of a pool or larger exterior living area. Much of this demand was prompted by COVID-19 and the desire for more recreational space within the home – a trend that is not anticipated to be a permanent one. Bathroom renovations and new flooring are highly regarded as yielding the best return on investment. Across markets such as Mississauga, Thunder Bay, London, Barrie and Ottawa, painting is noted by RE/MAX brokers as the top renovation that homeowners are doing themselves, as well as one of the best ways to also see an improvement on ROI. – RE/MAX
Need Advice On Your Renovations?
If you’re thinking of starting a new home renovation to improve the value of your home, give us a call. We’d love to take a look at your home and let you know what you should and shouldn’t do to add value in the current market.