How bad is this recession going to get? Is the sky actually going to fall…nobody knows for certain but the one thing we do know is people are going to continue to renovate!
Don’t just take my word for it, let’s look at a few industry factors that I believe are going to contribute to this trend. New home construction is slowly down in most areas across the country as many people are shying away from purchasing new homes in anticipation of a potential bottoming of the market and a lack of access to credit. This means more people are looking to stay in their current existing homes and improve upon them.
As homeowners look at potential ways to save money in the wake of a recession, travel and recreational expenses are always the first to go. This means the average homeowner is looking at spending more time at home and more likely wants to improve their home. Renovations make sense, increase the value of your home while increasing your own direct enjoyment from your home.
Also as the work flow dries up for many new home construction trades, many of them are making the shift back to home renovations. What does this mean for the average homeowner exactly. Money Sense Columnist Julie Cazzin says DO RENOS! Remember that three-month wait you had to endure to get your leaky faucet fixed? Remember the staggering bill you had to pay? That all becomes a distant memory if recession hits.
When times turn tough, skilled trades people are eager to do household chores, on your schedule. Better yet, homeowners will once again have some bargaining power and that should result in lower prices. “A roofing contractor, for instance, can knock a thousand dollars off a $6,000 job because he can absorb the loss into labor costs,” says Mel Fruitman, vice-president of the Consumers’ Association of Canada in Ottawa. “That’s why home renovations and repairs is one area where you’ll see actual price decreases for consumers instead of just price freezes.”
CMHC reports indicate that Canadians spent over 17 billion in home alteration and home improvement projects. The renovation business is one of the few truly recession proof businesses. When the market is booming, people want to move up and that sometimes requires updating the bathrooms and kitchen. When the market is stagnant, people stay put and spend money beautifying their existing surroundings.
