As mortgage rates continue to be high, 55 percent of Canadians admit they would choose to improve their current home rather than move house. But with an ongoing skills shortage, some may struggle to book their preferred contractor.
TORONTO, ONT.: More than half of Canadian homeowners are delaying moving home, instead choosing to renovate or extend their existing property, due to concerns about high mortgage rates and the unstable financial market.
According to new data released by Homestars.com, the reliable way to hire contractors, 55 percent of homeowners in Canada are opting to improve their home over upgrading to a new property.
This figure rises to 64 percent in the 35-54 year age group — arguably the bracket most likely to upgrade to a new home in normal circumstances.
Geographically, Alberta was the region with the highest number of homeowners choosing to improve, not move, with 63 percent stating they would renovate over buying a new home.
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The lowest was British Columbia, which was still nearly half (48 percent) of homeowners choosing to stay put and make home improvements.
The Canadian housing market continues to be problematic, with house prices consistently rising and making affording a new home difficult.
On top of this crisis, President Trump’s new tariffs will cause new house building to slow down as material prices rise exponentially.
Tony Stillo, Director of Canada Economics at Oxford Economics said that Trump’s tariffs will “inflict pain” on every one of Canada’s economic sectors.
While the switch to improving, not leaving, current homes is positive news for contractors across Canada, it could present an issue for homeowners.
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The increase in people choosing to renovate or extend is likely to cause a spike in demand that could see customers having to book months in advance to secure their preferred pro.
Canada has been suffering from a declining skilled labour workforce for years, but the problem is speeding up.
According to Employment and Social Development Canada, close to a quarter of the four million Canadians who work in trades are set to retire by the end of the decade — yet few are being recruited.
Colleen McGrory, from Homestars.com, said that homeowners must move fast and plan ahead if they want to secure a contractor for a job.
“Contractors are already in high demand across the country, and this new research suggests that more people than ever could require a pro to complete the necessary work on their home.
“We’d advise any homeowners considering home improvements to book well in advance to secure their preferred contractor. We’re anticipating a larger-than-ever influx of jobs in early 2025, so don’t delay.”