Friday, December 4, 2015

Home renos are the new housing boom: CMHC

Posted in
By: Susan Pigg Business Reporter, on Tue Nov 03 2015

Baby boomers expected to lead spending spree in what's now a $25 billion business in Ontario

Basement renos are going to be big business across the Ontario housing market over the next few years, as will be the remaking of the province’s aging rental buildings, more than 85 per cent of which are creeping up on 40 years old.

Those two things alone could contribute to an explosion of work for contractors and craftsmen in what’s already a $25 billion construction sector in Ontario alone, according to analysts with the Canada Mortgage and Housing Corporation.

Bankrolling all those new bathrooms, kitchens and subterranean sleeping quarters will be two extremes of homeowners, said CMHC Ontario regional economist Ted Tsiakopoulos at the housing corporation’s annual Toronto Housing Outlook Conference Tuesday.

The biggest spenders are expected to be 55- to 64-year-old baby boomers, flush from “the wealth effect” — the astounding growth of house values over the last decade.

At the other end of the renovation spending spectrum will be first-time house buyers in the 24- to 44-year range, looking to add a basement apartment so the rent will help pay their hefty mortgages.

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