Home renovation market thriving in Vancouver

The home renovation industry is thriving in MetroVancouver, according to an economist with CIBC.

Citing figures from the Bank of Canada,Benjamin Tal saidrenovations in the region are worth nearly $8 billion to the B.C. economy.

A report by TD Economics in 2013found renovation spending across Canada hasincreasedroughly seven per cent a year since 2003.

"This is fastest pace since 2007,so clearlypeople are renovating their homes at a pace wehaven't seen in many years," said Tal.

"It's difficult for most people just to afford to move to thenext level,so renovations givepeoplethe option," said Huguet.

"They cancast their vision on paper and maybe even do it in stages."

But more renovations, do not necessarily mean bigger budgets.

In a CIBCpoll earlier this month, Canadianhomeowners said, on average, they plan to spend $17,000 on renovations, down from almost $20,000 last year.

While budgets may be down, the number of people planning to renovate is up.42 per cent of people polled this year plan to renovate, compared to 40 per cent last year.

Tal predicts the renovation market will become even stronger as the increase in housingpricesmakes it more difficult for people to trade up.

Melanie Watt and Rob Ayrdwere thinking of upgrading and leaving their Coquitlam bungalow for a newer home.

"We looked ata place in Burnabywhich was close to what wewanted but it was $1.5 millionso that's not on," said Watt.

Instead, the couple used the equity in their houseand spent a few hundred thousand dollars renovating.

"Next door is Melanie'sbest friend,for like 37 years ...to stay here is like a bonus," said Ayrd.