Before the COVID-19 pandemic lockdowns struck in March 2020, spending on home renovations in Ontario was already outpacing the rest of the economy, with more than $80 billion spent on improvements in 2019 according to Altus Group research. Since the pandemic hit, renovation permit applications are up a further 18 per cent across the province.
While homeowners’ reasons for renovating are varied – problems to solve or purely cosmetic – there’s no doubt that some interesting trends have arisen with renos on the rise. In a recent episode of the Ready to Real Estate podcast, TRREB Chief Market Analyst Jason Mercer met with Lou Orazem, Chair of the Building Industry and Land Development Association (BILD)’s Renovator Executive Committee and Principal of Inspire Homes, to discuss the shifting landscape for renovations in Ontario. We share four compelling insights from their conversation.
- Long-term retirement planning = increased accessibility improvements.
Lou brings up the long-term care home issues in the early months of the pandemic and how that was a wake-up call for many to bring their elderly parents home, or plan to stay in their own homes as long as possible even if their mobility decreases. That wake-up call can be observed in a huge increase in accessibility-related renovations. Jason adds that the lack of availability of desirable home types might also encourage an accessibility reno to extend the owner’s time in the home and their preferred neighbourhood.
- “Greening” renos are also on the rise.
Climate change – and the impacts that a home might have on making it worse – is of much greater concern now to homeowners than in the past. Lou mentions that his clients are purposefully choosing climate-friendly renovation materials and practices, such as better insulation and windows, or opting for all-electric appliances.
- There are tax credits and grants available for renos.
With respect to both increasing the accessibility and decreasing the climate impact of your home, Lou adds that there are several government tax credits available. A provincial Seniors’ Home Safety Tax Credit (which also applies to those with disabilities) was introduced for the tax years 2021 and 2022, and is worth 25 per cent of up to $10,000 for eligible renovation expenses per year for a principal residence. The federal government also recently announced the Multigenerational Home Reno Tax Credit, which will offset the costs for a renovation to create a basement suite or build an addition for an elderly or disabled family member.
The Canada Greener Homes Grant, only a year old, covers many different aspects of a renovation and rebates up to $5,600. The Grant includes an energy audit before and after the reno, which helps guide the homeowner on where the most critical efficiency improvements are needed.
- I’m ready to reno! How do I get started?
Lou says the most important thing to do before you reach out to a contractor is define the high-level goals you’d like to achieve with the renovation. It’s also helpful to ask yourself the following questions:
- How much work are you willing to do yourself?
- Will you decide on the products used and buy them yourself?
- Will you manage the contractor(s) yourself?
Knowing how much of your own work you’ll be putting into the renovation helps you find the right kind of contractor, or even a design-build firm that can take care of the entire project from start to finish. BILD’s RenoMark program can help you search for the right contractor for your project.
If you’re thinking of embarking on your own renovation or you’re a REALTOR® looking to advise your clients, don’t miss this episode for even more tips and trends in the reno space.
