ADY Renovation - Change in renovation activity

Renovation Activity Remains Buoyant

Almost half of the Canadian Home Builders' Association renovator members responding to the Winter 2006/2007 Pulse Survey poll report that their renovation activity was higher in 2006, compared to only one in nine who reported a decline. Renovators expect further increases in their renovation activity over the next year. In all regions, the proportion of renovators who expect higher activity over the next year is larger than the proportion that expects lower activity.

Top concerns are shortages and rising costs of trades/labour - expected to be critical problems by one in five renovators - and the underground economy, which one-fifth of renovators reported is still a critical problem. Concerns over insurance rates/premiums, insurance coverage, rising costs of building materials, builder profitability and theft of materials from sites have eased since the last survey. Renovation contracts on average are largest in B.C. and Alberta and smallest in Quebec. Across the country, the average size of contracts was $55,000 and the average duration was about eight weeks. Project sizes are typically smaller in Atlantic Canada and larger in British Columbia and Alberta. Increased requests over the past year were most often reported for bathroom and kitchen renovations, complete interior/exterior renovations and energy efficient improvements. Decreased requests were most often reported for conversions from non-residential to residential.