Intentions to renovate remain steady in Quebec despite the volatile economic climate

MONTREAL, March 16, 2023 (GLOBE NEWSWIRE) -- RenoAssistance and the Association des professionnels de la construction et de l'habitation du Québec (APCHQ) have released the results of the second edition of a survey on renovation intentions in Quebec. The study, conducted in January of this year, focuses on the types of renovation, projected budgets, motivations, and financing of the work families want to do in their homes.

"The stability of renovation intentions can be partially explained by the large number of properties that changed hands during the pandemic. Many of these owners want to make their homes reflect their tastes. However, keep in mind that the current economic climate may lead them to choose the lowest bidder to save money. It's still essential to do your homework to avoid unpleasant surprises, even if someone you know recommends the contractor," affirms Paul Bégin, Chief Operating Officer for RenoAssistance.

As in the previous study, this survey targeted homeowners intending to spend at least $5,000 on renovations over the next three years. Renovation projects were grouped into three categories: interior, exterior, and additions or conversions.

Renovation intentions remain stable

• Nearly two-thirds (65%) of homeowners surveyed believe they are likely or very likely to do at least $5,000 worth of renovations in the next three years?virtually unchanged from 2022 (66%).
• 42% of respondents intend to complete the work within the next 12 months.
• 38% of respondents believe they'll need financing to complete the work, a slight increase from last year (33%). Despite the slightly higher reliance on financing, most (76%) still intend to use personal savings.
  

No belt-tightening for now
Despite the challenging economic environment, the amount surveyed homeowners plan to spend on renovations remains unchanged from the 2022 results. Average budgets of approximately $21,000 for interior renovations and $20,000 for exterior renovations are expected. In contrast, respondents plan to spend an average of $73,000 for additions, down from $81,000 last year.

Homeowners are concerned about the economy
Most (54%) of those surveyed are still confident about their renovation project. Only 9% say they are very confident, reflecting a more nervous outlook. Although renovation intentions are remaining steady, homeowners are being cautious and closely monitoring the economic situation. Current financial uncertainty could result in work postponement or budget reductions. Nearly half of the respondents (48%) say the economy could lead them to delay their projects, while 46% of homeowners say it will have no impact. Half of the respondents (51%) expect to keep their original budget, while 40% expect to reduce the scope of the project in terms of budget.

Licensed contractors for peace of mind
For those planning renovations, hiring a licensed contractor is the preferred choice (60%) versus doing it themselves (37%), asking a relative (23%), or hiring a handyperson (13%). The primary motivation for most homeowners choosing a licensed contractor is to ensure quality work (77%). Visiting the RenoAssistance website (22%) has grown in popularity over the past year and is now in the top three sources used to find licensed contractors, after word of mouth (52%) and Google search (28%).

Interior renovations are still popular
Again, nearly three-quarters (72%) of those surveyed plan to do interior renovations in the next three years. Major bathroom renovations (31%) are among the most popular projects. The interest in refinishing or replacing floors (27%) continues unabated. Major kitchen renovations (22%) are less of a priority this year, while minor renovations (23%) are gaining ground. After the bathroom and kitchen, the basement (22%), bedrooms (14%), family room (8%), and laundry room (6%) are among the most likely rooms to be renovated.

Exterior renovations are on the rise
More than half (53%) of respondents are considering outdoor renovations by 2025, a significant increase from last year. Not surprisingly, the most common renovations are to the deck, balcony, or patio (36%). This is followed by landscaping, windows and doors, roofing, and siding for more than one in five respondents for each type.

Additions or conversions
Finally, 7% of respondents are considering expanding or converting their home. For nearly two-thirds (65%) of them, an expansion project is on the horizon. Many plan to add (24%) or remove (17%) partitions, invest in a home conversion (12%), or adapt their home (8%).

"The pandemic obviously stimulated interest in improving home comfort, which is still a priority for most households. For now, homeowners are choosing to continue with their major renovation projects. This situation nevertheless remains tenuous given the economic uncertainty and rising interest rates," explains Paul Cardinal, Director of Economic Services at the APCHQ.

Survey methodology
The Ad Hoc Research web panel survey was conducted from January 12th to 22nd, 2023, on behalf of RenoAssistance, the APCHQ, and Desjardins, among 1,018 Quebecers aged 18 and over who own at least one property and intend to do at least $5,000 worth of renovations or maintenance over the next three years.

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About RenoAssistance
Acquired by Desjardins in January 2020, RenoAssistance employs 130 people and has more than 2000 professionals and contractors in its network. Since its founding in 2010, the company has served more than 118,000 customers. RenoAssistance offers a one-stop solution to help homeowners and commercial property owners succeed in their renovation and construction projects. Its 53-point Verification Process, which contractors must undergo to be part of its network, is the most comprehensive in the industry. All clients work with a dedicated Renovation Advisor and receive up to three quotes from Verified Contractors at no cost or obligation. RenoAssistance's services are currently available in Greater Montreal, Quebec City, the Greater Toronto Area, and Ottawa. For more information, visit renoassistance.ca.

About Desjardins Group
Desjardins Group is the largest financial cooperative in North America and the fifth largest in the world, with assets of $407.1 billion. It has been named one of the world's best employers for women by Forbes. It meets the diverse needs of its members and customers, both personal and business, offering a full range of products and services through its extensive network of locations, virtual platforms, and subsidiaries across Canada. Ranked among the world's strongest banking institutions by The Banker, Desjardins' capital ratios and credit ratings are among the best in the industry.

About the APCHQ
The Association des professionnels de la construction et de l'habitation du Québec (APCHQ) has 20,000 member companies in 13 regional associations. It works in the interests of its members to respond to issues related to construction quality, environmental challenges, and housing needs.

Media information:

RenoAssistance
Laurence Lafforgue-Lapointe
Public Relations Advisor
Cell: 514-583-1316
[email protected]