StatsCan’s first Reno index shows a slight increase in spending in the second quarter of 2024 – money.ca

Canadian Renault Cost Snapshot

In the second quarter of 2024, home renovation prices increased by 0.7% in Canada, following a 0.8% increase in the first quarter.

BC saw the largest quarterly price increases in the second quarter at 1.4%, followed by Saskatchewan at 1.3% and Newfoundland and Labrador at 1.2%. Quebec posted the smallest quarterly increase of 0.4%.

Among the 11 CMAs measured, Victoria and Vancouver posted the strongest quarterly growth, both rising 1.4% in the second quarter.

Saskatoon was close behind, with renovation prices rising 1.3 per cent in the second quarter, followed by Calgary at 1.2 per cent. Ottawa (+0.3%) and Montreal (+0.2%) experienced the smallest quarterly increases.

While individual renovation costs naturally vary by project, location and more, heating and air conditioning renovations saw the strongest quarterly increases in the second quarter, followed by exterior additions or improvements.

Across the country, project groups for roofing, exterior additions or improvements, and window and door renovations saw the strongest price growth over the year.

National price increase

The national composite RRPI increased by 3.7% year-on-year in the second quarter. BC had the strongest annual growth at 5.8%, followed by Saskatchewan at 5.7%. Composite prices in Quebec saw the smallest annual increase, rising 1.3% on the year.

From the first available RRPI data in the first quarter of 2017 to the second quarter of 2024, the national composite index increased by 66.5%. Ontario saw the biggest increase, with the provincial composite index up 91.8%, thanks to strong price pressures in Toronto. BC is next at 56.9%, with Newfoundland and Labrador trailing in third place at 56.4%. Saskatchewan (+40.5%) and New Brunswick (+40.1%) had the lowest price pressures.

Quarterly growth in renovation prices remained relatively modest from the first quarter of 2017 to the second quarter of 2020, ranging from 0.1% to 1.7%, but during the pandemic lockdown period, project completion costs for housing renovation began to rise sharply.

Quarterly growth in completed renovations rose from 0.3% in the second quarter of 2020 to a peak of 5.9% in the first quarter of 2021. From the second quarter of 2020 to the second quarter of 2021, the national composite RRPI rose by 14.7%. It remained bullish until the second quarter of 2022, with prices rising 18.9% from the second quarter of 2021 to the second quarter of 2022.

Price pressures continue to remain uneven across the country, which the RRPI attributes to both local demographic trends and trends in labor availability.

Methodology

The price data comes primarily from the Survey of Builders and is supplemented by “several administrative data sources,” according to a release. Contractor rates include the cost of all materials, labor, equipment, overhead and profit required to construct each project. They exclude value added taxes and any project design costs. For aggregation, project group weights are derived from the Household Expenditure Survey, while the relative importance of each CMA is derived from renovation building permit data.

The index is not seasonally adjusted.

Sources

1. Statistics Canada: Home Renovation Price Index, Second Quarter 2024 (October 25, 2024)