Residential renovation expenditure

Residential renovation expenditures in Canada have experienced a period of noticeable fluctuation, reflecting the shifting dynamics of societal needs and economic conditions. For example, a significant increase in 2021 was driven primarily by the unique circumstances of the pandemic. This period highlighted a pronounced shift in focus towards the home as a multifunctional space, heavily influencing spending habits. The trends in these initial years created a distinct pattern of investment and behavior in the Canadian housing market.

Following the peak in 2021, renovation spending began to moderate over the next few years, suggesting a gradual normalization of spending as the immediate impacts of the pandemic began to ease. The decline can be attributed to factors such as the relaxation of lockdown restrictions, a return to pre-pandemic activities, and a potential saturation of renovation projects undertaken during the height of the pandemic. These mid-period years saw the economy readjusting and returning to more typical output levels.

In 2025, the expenditure levels are expected to reflect a stabilization in the renovation market after the preceding years of volatility. This stabilization suggests that while the heightened spending of the peak pandemic period has subsided, renovation activity continues to remain a relevant component of household spending. The figures likely reflect a mix of ongoing home improvement projects, general maintenance, and selective upgrades, as homeowners adapt their living spaces to align with their evolving needs and preferences.