B.C. has the lowest proportion of homeowners in the country planning to renovate their homes due to a trilogy of circumstances that altered intentions during the past three years.
An RBC survey found that only 55% of B.C. homeowners plan to renovate over the next two years, a few points below homeowners in Alberta (58%), and below the national average of 62%.
“It’s a bit of a change from our survey three years ago when B.C. had among the highest intentions to renovate,” said Kevin Lutz, regional manager of residential mortgages at RBC. “It’s an interesting anomaly because you’ve got historically low interest rates.”
Lutz noted part of the reason could have been that many homeowners likely took advantage of the home renovation tax credit last year to complete updates to their home. But the slowdown in the economy and implementation of the HST also likely affected people’s intentions over the next few years.
He noted, however, that B.C. homeowners generally have newer homes than anywhere else in the country, so many new home owners wouldn’t necessarily need to renovate their principal residence.
The survey also found that British Columbians, along with Albertans, were among the least likely (36% and 37%, respectively) to remain in their homes for more than 10 years. Nationally, 46% plan to stay in their homes for more than a decade, with 58% of owners in Quebec and Atlantic Canada planning to stay in their homes for more than 10 years.
Lutz said those that are planning to renovate should have a financial plan in place that takes into account potential cost overruns. About 31% of B.C. homeowners said their biggest mistake was going over budget, the highest proportion in the country. About 30% of B.C. homeowners were 10% over budget or lower, while 28% were 11% to 20% over budget.