The amount Canadians spent renovating their homes has dropped to a five-year low this year, according to a CIBC report.
The study, released Thursday, found that renovation spending is down five per cent to an average of $11,000 per planned spend in 2018. The study found that 45 per cent of Canadian homeowners planned to renovate this year, down from 48 per cent in 2017.
"Canadians continue to see the value of investing in their homes, but they’re taking a very practical approach by focusing on lower-cost projects this year," CIBC Executive Vice-President, Personal and Small Business Banking Edward Penner said in a release.
British Columbia is seeing the steepest renovation spending drop, with a planned $9,900 expenditure per household. That figure marks a 35 per cent decline from the $15,522 B.C. residents spent in 2016.
A move away from major renovations contributed to the decline, with 52 per cent of respondents classifying their planned projects as “basic maintenance.”
“Staying on top of maintenance and repairs may not be as exciting as remodeling your kitchen, but these smaller projects can go a long way to brighten up your home and save you money down the road,” Penner said.
However, only 44 per cent of respondents expect to pay for their renovation up front. One-third of respondents expected to have the work paid off within a year, while an additional 15 per cent expected it to take one year or more.
Nearly two-thirds of respondents (63 per cent) admitted to not having a budget for their upcoming projects.