The contractor will see you now: How the housing market downturn has hit the home reno business

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Falling home prices, economic uncertainty and the high cost of borrowing have put the brakes on the once red hot home improvement industry

Renovator Lou Orazem used to limit the number of projects he would quote in a week from homeowners looking to expand or upgrade their living space.

But in June, Orazem noticed a drop in the number of inquiries to Inspire Homes, the design-renovation company he founded 20 years ago. As goes the housing market, so goes the reno business, say experts like Orazem and Roshko. A volatile stock market, economic uncertainty and the high cost of borrowing have put the kibosh on some home improvement projects. Add to that the slowdown in home sales, and there’s less demand for the renovations people want done as soon as they get the keys to a new place.

But that has changed with the market’s downturn, said Orazem, past chair of the Renovator Executive Committee of the Building Industry and Land Development Association. Between June and September last year, Inspire Homes saw 54 per cent fewer inquiries than in 2021, and 21 per cent fewer than in 2019.

Last year’s March survey of nearly 1,000 site users found that homeowners spent $13,000 on average in the previous 12 months on indoor renovations. Outdoor projects averaged $6,600.

 

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I remember when Harper gave tax breaks for modernizing homes through renovation and making them more energy efficient. We replaced our windows and furnace. This is not political, why was this a bad idea, because my furnace back than did not use pronouns?

Every real estate agent I know has been saying the opposite. Lol

Home Improvement Industry is still hot. Where you looking?

Yet it sounds like the BoC wants to raise interest rates again. They should wait. Let the current hikes to effect. Like they’re obviously doing.

Pre construction projects are affecting a lot a people are not getting mortgage approvals, if they get monthly payments, they are double. Who fault it is? Why the industry wasn't controlled at first place when low interest rates and overpriced market. $400,000 home sold in $1.5m

All caused by Justinflation! Compliments of your loving and caring NDP Liberal communist coalition.

No kidding they will. Lol

The bubble was bound to burst eventually.

Once upon a time, carpenters and anyone else in the various trades were in it just to make a living, they made slightly more then, say a laborer, now they want us to make them millionaires, this, long before covid

There is little to no consumer protection and little regulatory over sight in construction. If a basement contractor or someone working on your kitchen screws up you have to take them to court

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