Residential renovation costs were up 0.6% in Q3 following a 0.7% rise in the previous quarter, according to the latest data from Statistics Canada.
Roofing projects saw the biggest quarterly cost increase in Q3 2024, followed by windows and doors renovations, according to the Residential Renovation Price Index (RRPI).
However, the overall pace of cost growth slowed compared to earlier in the year. This deceleration was attributed to improvements in the availability of skilled trade workers and a reduction in material cost pressures.
The data revealed some regional differences in renovation costs. Quebec saw the biggest jump, with a 0.9% increase, followed by Alberta at 0.7%. Meanwhile, Newfoundland and Labrador had the smallest rise at just 0.3%.
Montreal saw the strongest growth among Canada’s 15 census metropolitan areas (CMAs), with costs rising 1.0% in Q3, largely driven by significant increases in solar panel installations, wood floors, and furnaces. Ottawa also experienced an uptick, with costs rising 0.6%, led by increases in carpeting, windows, and wood floors.
Notably, Montreal and Ottawa were the only CMAs where residential renovation costs accelerated in Q3, while the remaining 13 CMAs reported a slowdown in price growth.
Home equity a key source of funds for home renovations
As renovation costs keep rising, Canadians continue to rely heavily on their home equity to fund these projects.
According to 2023 statistics from Mortgage Professionals Canada, more than seven in 10 Canadian homeowners have either already renovated their home or plan to do so in the near future. Of those who accessed their home equity, 34% used the funds for home or condo renovations.
The main reasons for renovations continue to be upgrading homes for personal preference (73%) and increasing resale value (40%). Other common motivations include preserving the home’s structural integrity (30%), completing safety-related work (24%), adding space for family (21%), and creating a dedicated workspace (11%).
Interestingly, household income doesn’t seem to have a significant impact on the decision to renovate, with homeowners across different income levels equally motivated to improve their properties.
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Last modified: January 13, 2025