British Columbia’s Homeowners Choosing to Renovate Rather Than Relocate

August 7th, 2008 Categories: Real Estate News, Vancouver Real Estate

British Columbia’s renovation industry is projected to hit $7 billion in 2008 as upwardly spiralling real estate prices convince many baby boomers to mothball moving plans

Andrew Petrozzi recently published this article in Business in Vanouver

BC’s booming home reno business is expected to keep on booming as aging British Columbians are projected to shell out an estimated $7 billion this year from home renovations and improvements, according to Peter Simpson, CEO of the Greater Vancouver Home Builders Association.

Simpson said that the total is up significantly from last year and is expected to continue to rise through the year. Unlike new residential construction starts in BC, which have started to moderate, the value of home renovations continues to rise. The sector’s growth is also draining the skilled labour pool.

BC’s baby boomers are staying in their homes for as long as they can and renovating them to fit their needs as they age and high real estate prices are forcing many to renovate instead of moving after their kids move out. Some decide to keep that expensive Vancouver home because of its convenient location, water view or proximity to the water’s edge.

According to CMHC’s May 2008 Renovation and Home Purchase Report, homeowners in Canada’s 10 major urban centres spent $19.7 billion on home renovations in 1007, with the top 5 cities spending an average of $13,200 per home. Stats Canada say renovation spending in BC in 2008’s first quarter climbed to $4 billion,21.2% increase from the same period in 2007.

High demand for home renos has bought a lot of unqualified contractors into the market and created an underground economy in all-cash deals, according to Simpson.

Before you renovate, research prospective contractors by using resources like GVHBA or CMHC and see how you’re supposed to go about getting a renovation done. Check the contractors references.

We have a friend who is a contractor but he’s so busy with big jobs he has no time for the little ones!

Have a Vancouver home reno story you’d like to share with us? Did you renovate instead of relocate? Was it less expensive or is there an emotional attachment to your family home?

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For myself July was a busy month, the buyers are out and yes, some are lowballing. Tomorrow we will start on July’s stats.

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