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Tuesday, November 18, 2003

Home repairs and renovations

2002

Homeowners spent more than ever last year on repairing and renovating their homes, according to data from the 2002 Homeowners Repair and Renovation Survey.

There are several possible reasons for this increase, including low interest rates, strong employment growth, higher disposable incomes and shortages in the rental and resale housing markets. These factors contributed to higher investment in new housing and in repairs and renovations of existing housing.

Total homeowner spending on repairs and renovations in Canada
  Current dollars Constant 2002 dollars1
  $ billions
1993 12.6 15.0
1994 12.8 14.7
1995 11.8 13.5
1996 11.8 13.4
1997 12.7 14.0
1998 12.6 13.8
1999 13.6 14.6
2000 .. ..
2001 20.4 21.2
2002 23.4 23.4
1To facilitate historical comparisons, data in this column have been adjusted using indices that reflect price and wage changes in the construction field.
..Figures not available.

On average, homeowners spent $2,910 repairing or renovating their homes in 2002, about 9% more than they did in 2001 and approximately 58% higher than the average of $1,837 in 1998, which was a decade low. Figures from previous years used in comparisons have been adjusted using indexes that reflect price changes in the construction field.

Roughly two-thirds was devoted to work contracted out, and about one-third to materials purchased separately by the homeowner. This proportion remains unchanged from previous years.

In total, homeowners spent $23.4 billion on repairs and renovations in 2002, an increase of nearly 11% from 2001, and about 75% higher than the decade-low total of $13.4 billion in 1996.


Note to readers

The 2002 Homeowner Repair and Renovation Survey collected information in March 2003 from a sample of more than 20,000 homeowners about expenditures made in 2002 on repairs and renovations to their homes.

To facilitate historical comparisons, data from previous years have been adjusted to reflect price and wage changes in the construction field. Only summary level expenditures from previous years have been adjusted.

In general, spending on repairs, maintenance and replacement of equipment is considered to be part of the cost of shelter, while spending on additions, renovations and new installations of equipment is an investment.

Replacement of equipment refers to the installation of equipment that replaces an existing unit. It includes upgrading to a superior quality of equipment and conversion from one type of unit to another (such as replacing an electric hot water heater with a gas-fueled unit). New installations refer to equipment that did not previously exist on the property or were installed in addition to other equipment, such as air conditioning equipment.

The averages and medians were based on homeowners that reported an expense, as well as those that did not.


One in four households that reported at least one repair or renovation expenditure spent less than $500, accounting for 1% of total repair and renovation spending. In contrast, 22% of reporting households spent $5,000 or more, accounting for 71% of repair and renovation spending.

The percentage of households reporting repairs and renovations was unchanged from 2001. About 76% of the nation's 8.1 million homeowner households indicated they had made at least one repair and renovation expenditure. The percentage of households reporting at least one such expenditure ranged from a high of 84% in Prince Edward Island, to a low of 67% in Alberta.

Painting remained the most common type of repair or renovation work reported, with 45% of owners undertaking some type of interior or exterior paint job. Also commonly reported were repairs to plumbing fixtures, to patios, fences or driveways, and to heating or air conditioning systems.

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Highest average spending in Ontario

Average spending on repairs and renovations ranged from a low of $2,130 in Manitoba to a high of $3,480 in Ontario.

As in previous years, homeowners in Newfoundland and Labrador were more likely to take on their own repairs compared with homeowners in other provinces. They spent over half of their repair and renovation budget on materials.

In contrast, Ontario homeowners were more likely to hire others to carry out their repairs and renovations. They spent 69% of their repair and renovation budget on contract work.

Overall, rural homeowners spent $2,650 on repairs and renovations, while their urban counterparts spent $2,980.

Rural homeowners allotted 46% of their total spending on repairs and renovations to materials purchased separately, compared with 34% for urban homeowners.

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Less than two-thirds of lower-income households reported expenses

Households with a before-tax annual income of less than $20,000 in 2002 (considered lower-income households for the purposes of this report) spent on average $1,570 on repairs and renovations. Their median expenditure was $200.

About 64% of these households reported some expenses. These households represented 8% of all homeowner households in Canada and 5% of total spending.

In contrast, households with a before-tax annual income of $80,000 and over in 2002 spent an average of $4,530 (the median was $1,800). About 86% of these households reported having expenses for repairs and renovations.

These households represented 21% of the nation's homeowner households, yet they accounted for 33% of total spending.

Households with lower incomes spent their repair and renovation budgets differently than those with higher incomes. Lower-income households allocated 57% to repairs, maintenance and replacement of equipment and 43% on additions, renovations and new installations of equipment.

These proportions were almost reversed for households with higher incomes, which spent 46% on repairs, maintenance and replacement of equipment, and 54% on additions, renovations and new installations of equipment. These proportions were similar in 2001.

Couples with children spent the most

Couples with children spent the most of all single-family households on repairs and renovations: $3,550 on average. Almost 60% of this amount was spent on additions, renovations and new installations. Their median expenditure was $1,050.

In contrast, individuals living alone, 42% of whom are seniors, spent considerably less on repairs and renovations ($1,780). Similarly, lone-parent households spent about $2,710. For these two groups, over half of their repair and renovation budget went to repairs, maintenance and replacement of equipment. The median expenditures were $280 and $650 respectively.

Higher spending to repair and upgrade older dwellings

The older the dwelling, the greater the amount homeowners spent to repair, maintain and replace equipment.

In 2002, owners of homes built before 1946 spent on average $4,200 on repairs and renovations. Of this total, almost half (47%) went to repairs, maintenance and replacement of equipment, while the remainder went to additions, renovations and new installations of equipment.

Owners of homes built after 1990 spent on average $2,500. They allocated one-third of their budget to repairs, maintenance and replacement of equipment, and two-thirds to additions, renovations and new installations.

Summary data from the 2002 Homeowner Repair and Renovation Survey are available free of charge on the Canadian statistics module of our website. The tables are Homeowner expenditures on repairs and renovations, Canada and provinces and Homeowner expenditures on repairs and renovations by period of construction. The electronic publication, Homeowner Repair and Renovation Expenditure, 2002 (62-201-XIB, $25), is now available.

Definitions, data sources and methods: survey number 3886.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Client Services (1-888-297-7355; 613-951-7355; income@statcan.gc.ca), Income Statistics Division.

Homeowner repairs and renovations by income and household type

2002

Selected characteristics All households Income Type of household
    less than $20,000 $80,000 and over one person couple with children lone parent
% of households 100 8 21 17 37 4
% of total spending on repairs and renovations 100 5 33 10 46 4
% of households reporting expenses on:            
  Repairs and renovations
76 64 86 66 81 78
  Repairs, maintenance and replacement of equipment
70 60 81 61 75 75
  Additions, renovations and new installations of equipment
36 22 48 25 43 34
Average spending on repairs and renovations ($) 2,910 1,570 4,530 1,780 3,550 2,710
Median spending on repairs and renovations ($) 750 200 1,800 280 1,050 650
% of average spent on:            
  Repairs, maintenance and replacement of equipment
49 57 46 63 44 52
  Additions, renovations and new installations of equipment
51 43 54 37 56 48



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Date Modified: 2003-11-18 Important Notices