Nearly half of Torontonians are renovating instead of moving due to real estate prices
TORONTO–(BUSINESS WIRE)–Today, Billdr, a digital home improvement platform that helps homeowners through their renovation journey from start to finish, released new data revealing how Toronto homeowners are approaching renovations. Billdr commissioned Potloc to survey Toronto homeowners (93%) and future homeowners (7%). The survey found that two in five respondents (39%) renovated rather than moved because prices in the real estate market were too high, and that one in five homeowners draw on the equity in their home as their main source of income. funding for renovations (22 per cent), an increasing trend seen across Canada.
“This information is not surprising. We are seeing more and more homeowners choosing to stay put, invest in their home and avoid moving when the market is unstable,” said Bertrand Nembot, CEO of Billdr. “Affordability is a top concern for Canadians right now, whether it’s the recent battles with inflation, ongoing supply chain issues or the continued rise in lending rates. Finding a new home that meets all your needs is becoming increasingly difficult in today’s real estate market, and renovating is one way to avoid this difficulty.
Collected in April 2022, the study received responses from 300 people in the Toronto area. The data covers why Torontonians renovate their homes, their preference for renovating over moving, their level of confidence in navigating the renovation process, the stress they find in the renovation process, and Moreover.
The effect of the real estate market on renovations
As the market remains volatile, with prices still higher than in years past and limited supply, Torontonians are carefully considering their options. While 4 in 10 respondents have renovated because housing market prices are too high, 48% among 35-54 year olds, other reasons for choosing renovation over moving include:
More than half (58%) are likely to invest in renovating a home to renovate to create their dream home.
One in five (23%) chose to renovate rather than buy because moving is stressful.
One in ten (11%) renovates because they find that there is a lack of supply on the real estate market.
Overconfidence bias and renovations
The remodeling process is complicated, time-consuming, and full of endless options when it comes to contractors, vendors, cosmetic choices, and beyond. However, those who have not yet done a renovation have an overconfidence bias, with three in five respondents (64%) feeling very or somewhat confident. This confidence increases among men while it decreases among groups who have already carried out a renovation:
Men are more likely than women to say they are quite confident before completing a renovation (50% men versus 37% women).
Meanwhile, those who have already completed a renovation project are less confident, with one in seven (13%) saying they are not very confident about undertaking the process.
Beauty is Pain: The Stressful Side of Renovations
Home renovations are identified as one of the most stressful life events people can experience, with almost three-quarters (69%) of respondents saying they felt stress during renovations. Renovating is a long process that can inevitably induce stress:
Three in five respondents (60%) found it difficult to find a qualified and trusted contractor.
More than a third of respondents (37%) with previous renovation experience would renovate again, but with the right experts. This increases among women (42%).
For those who have completed a renovation, they found managing their project during construction (37%) and finding a general contractor (28%) to be the most stressful aspects of their renovation.
More than a quarter of respondents (27%) who completed renovations in the past year found the process quite stressful.
“Owners need support. There is a steep learning curve when renovating a home, and without doing your due diligence a lot can go wrong,” said Raphael Sammut, Billdr’s Managing Director. “From defining the scope and finding a trusted contractor to understanding where your money is going, the renovation process has many moving parts. We’re here to make the whole process seamless and ensure owners don’t have to pay out of pocket to learn things the hard way.
Billdr pairs homeowners with an in-house project manager to handle the most stressful aspects of a renovation. To alleviate major pain points, the Project Manager works with owners to translate their vision into a detailed scope of work, helps them navigate design and permits, gathers bids from Billdr’s network of approved contractors, and provides status updates throughout the build. Billdr turns renovation nightmares into homeowner’s dreams.
Visit billdr.co to learn more.
Billdr’s mission is to make home renovations simple, transparent and efficient for everyone. Billdr is an online marketplace network that walks homeowners and general contractors through the home improvement process. The marketplace platform assigns a dedicated project manager who guides and supports homeowners step-by-step through their renovation journey. Billdr covers all stages of the renovation process, from detailed project definition, development and review of architectural and engineering plans, cost estimation, selection of a certified general contractor and management of the project during construction until completion. For more information, visit https://billdr.co.