Over the past decade, the fastest growing component of residential investment in Canada is renovation expenditure. It outpaced the growth in home resale and new construction spending. The top renovation projects undertaken include new installations, additions, alterations, and replacement of appliances. The increasing growth in these renovation activities reflects the resilience of the wider housing market. This is further supported by low interest rates and steady home sales. Housing prices post just moderate advances in most cities as witnessed by many custom builders in Toronto and other regions. Increases is only in a few units and areas.
According to Statistics Canada, the average yearly growth in real renovation spending is at 2.5% from 2008-2014. About a third of the rise in the spending is accounted for by the expanding housing stock, while the majority is due to higher average real renovation expenditures per household. Custom builders in Toronto have been benefiting also from the rising levels of home sales. The housing market conditions became highly favourable to sellers, making the option to renovate very much attractive for most move-up buyers. The demand for more renovation projects is expected to be quick in the areas of Toronto, Vancouver and Calgary.
Major market conditions will still pose some challenges to the industry with only moderate growth in revenue and the pressure on input costs. But industrial price inflation for materials and equipment associated with renovations stays very low. These include heating and cooling units, appliances, furniture, cabinets, carpets, among others. Unfortunately, custom builders in Toronto and the rest of the regions will be challenged by increasing pressure on margins with a rising import bill that weakens Canadian dollar. Despite this, RDA Homes is always ready to take on any challenge and issue to provide our clients with a satisfying and rewarding experience in every stage of the building process. We are a home of highly qualified and experienced custom builders in Toronto and the GTA with the ultimate goal of delivering beautiful new homes and renovations that will exceed your expectations.