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2016 HOUZZ & HOME - CANADA August 2016 Overview of Home Renovation in 2015

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Big Ideas

ACTIVE HOMEOWNERS ON HOUZZ More than half of homeowners on Houzz renovated their homes in 2015

YOUNG AND RENOVATING Millennial homeowners were just as likely to renovate their homes as other age groups in 2015, largely driven by the desire to make a newly purchased home their own

STAYING PUT The desire to stay put is the primary motivation to renovate vs. buy a “perfect” home, trumping financial considerations

PRIORITIZING KITCHENS AND BATHROOMS Renovating homeowners focus on kitchens and bathrooms as their top renovation priorities. Most are addressing outdated design and style above other issues in these rooms.

BUDGET, WHAT BUDGET Nearly one-third of homeowners take on a remodeling project without setting a budget—the same share exceeds an established budget

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What We Are Doing in Our Home Charts below show the frequency of 2015 activities and planned 2016 activities related to the primary home as reported by homeowners on Houzz Canada.

FREQUENCY OF 2015 HOME-RELATED ACTIVITIES FREQUENCY OF PLANNED 2016 HOME-RELATED ACTIVITIES

AGE OF HOMEOWNERS WHO RENOVATED

10% 48% 43% 25-34 35-54 55+

65%

61%

45%

13%

12%

7%

4%

Decorated or furnished

Renovated

Repaired

Purchased

Moved in

Sold

Built a home

51%

46%

29%

3%

Renovate

Decorate or furnish

Repair

Build a home

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TOP REASONS FOR RENOVATING VS. BUYING

RENOVATING WAS MORE AFFORDABLE AS TOP REASON FOR RENOVATING VS. BUYING BY AGE

Why We Are Renovating vs. Buying a “Perfect” Home Charts below show the frequency of top reasons for renovating a home vs. buying a home that is already suited for the needs of the homeowner, as reported by homeowners who renovated their primary homes in 2015.

vs.

49% 33% 32% 27% 25%

Wanted to stay in the current home or lot/land

Wanted to stay in the same area/neighborhood

Renovating was a better return on investment (e.g.

resale value, rent, etc)

Renovating was more affordable (e.g., costs, property taxes, etc.)

Wanted a personalized home that fits my vision for

what a home should be

35% 28% 24% 25-34 35-44 45-54

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38%

35%

24%

19%

16%

Wanted to do it all along and finally have the time

Wanted to do it all along and finally have the financial means

Purchased home/moved in recently and want to customize it

Adapting to recent changes in family and/or lifestyle

Addressing recently discovered deterioration/damage due to age, termites,

etc.

TOP REASONS FOR STARTING RENOVATIONS IN 2015

Why We Are Renovating Now Charts below show the frequency of top reasons for starting renovations in 2015, as reported by homeowners who renovated their primary homes in 2015.

HOME PURCHASE AS A REASON TO RENOVATE

BY AGE RANGE

52% 25-34

24% 35-54

19% 55+

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What We Are Spending and How We are Paying Charts below show the average total spend on home renovations in 2015 and the frequency of top payment methods, as reported by homeowners who renovated their primary homes in 2015.

TOP RENOVATION PAYMENT METHODS

$81,000

AVERAGE TOTAL SPEND ($) BY AGE RANGE

AVERAGE TOTAL SPEND ON 2015 RENOVATIONS

RENOVATION PAYMENT METHOD BY AGE

48% 43% 9% 25-34

Years old 35-54

Years old 55+

Years old

76%

20%

19%

8%

7%

Savings/personal finances

Credit card - to be paid off over time

Home equity line of credit

Cash from home mortgage refinance

Gift/inheritance

63,500 68,700

99,400

25-34 35-54 55+

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29%

38% 3%

31%

48%

39%

36%

Decided to buy more expensive products or materials

Products or services were more costly than expected

Decided to change project scope or design

OVER-BUDGET RENOVATIONS BY AGE RANGE

How We Are Meeting Our Budget Goals Charts below show the frequency of renovations exceeding, staying at, and coming below the initial budget, as well as renovations without an initial budget, as reported by homeowners who renovated their primary homes in 2015.

RENOVATIONS EXCEEDING, AT OR BELOW BUDGET

Over budget

At budget

No initial budget

REASONS FOR OVER-BUDGET RENOVATIONS

Under budget

32% 29% 27% 25-34 35-54 55+

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29%

25%

23%

19%

17%

31%

27%

25%

21%

18%

Kitchen

Bathroom (other)

Living/family room

Bathroom (master)

Entry, foyer or mudroom

22%

22%

20%

18%

17%

Roofing

Windows or skylights

Deck

Exterior doors

Exterior paint

Where We Focus Our Renovation Priorities Charts and tables below show the frequency of top interior space, home system and exterior building feature upgrades, as reported homeowners who renovated their primary homes in 2015.

TOP INTERIOR REMODELS AND ADDITIONS TOP HOME SYSTEMS UPGRADES

Remodel Addition

TOP EXTERIOR BUILDING UPGRADES

30% 26% 21% Plumbing Electrical Heating

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Kitchen Bathroom

Outdated or undesirable design or style 24%

Outdated or undesirable design or style 15%

  47%       52%  

Countertops 5.4 Faucets/plumbing fixtures 4.0

  73%       78%  

Other interior rooms  

Outdated or undesirable design or style 11%    

  39%           Wall color or texture

4.6       62%          

What We Are Doing in Interior Renovations Tables below show the frequency of top renovation characteristics of select interior spaces, as reported by homeowners who renovated these interior spaces in their primary homes in 2015.

= Increase in room size

= Average length of construction (months)

= Top issue addressed during a renovation

= Top feature replaced during a renovation

TOP CHARACTERISTICS OF INTERIOR ROOM RENOVATIONS

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23200

11200

16800

5300

37400

25200

14500 8900

How Much Kitchens and Bathrooms Cost to Remodel Charts below show the average room size and spend on kitchen and bathroom renovations (excluding additions), as reported by homeowners who renovated their primary homes in 2015. Major bathroom remodel refers to a remodel where at least the cabinetry/vanity, countertops, and toilet are replaced; minor bathroom remodel includes all other remodels. Major kitchen remodel refers to a remodel where at least all the cabinets and appliances are replaced; minor kitchen remodel includes all other remodels.

19 sq ft

Average size of renovated

kitchen

AVERAGE SPEND BY KITCHEN REMODEL SCOPE

Minor remodel

Major remodel

11 sq ft

Average size of renovated master bathroom

AVERAGE SPEND BY MASTER BATHROOM REMODEL SCOPE

Larger kitchen (200+ sq. ft.)

Smaller kitchen (<200 sq. ft.)

Larger bathroom (200+ sq. ft.)

Smaller bathroom (<200 sq. ft.)

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Who We Turn to for Help Charts below show the frequency of overall professional hiring and the frequency of top professionals hired by non-DIY homeowners, as reported by homeowners who renovated their primary homes in 2015.

TOP HIRED PROFESSIONALS AMONG NON-DIYERS

TOP HIRED SPECIALISTS AMONG NON-DIYERS

81%

OVERALL PRO HIRING

33%

13%

12%

11%

7%

5%

5%

5%

General Contractor

Interior Designer or Decorator

Landscape Contractor

Builder

Kitchen or Bath Designer

Landscape Architect or Designer

Architect

Kitchen or Bath Remodeler

46%

38%

31%

27%

25%

Electrician

Plumber

Carpenter

Painter (exterior or interior)

Tile, Stone or Countertop

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General Contractor Interior Designer or Decorator

65% 31% 30%   47% 38% 37% Delivering a quality

result Staying on budget

Finding the right products and materials

  Finding the right

products and materials Helping me with defining my style

Delivering a quality result

Landscape Contractor Builder

71% 38% 37%   69% 32% 29% Delivering a quality

result Staying on budget

Finding the right products and materials

  Delivering a quality

result Finding the right

products and materials Staying on budget

Why We Value Pro Help Tables below show the frequency of the top three most valued contributions to home renovations made by each professional type, as cited by homeowners who renovated their homes in 2015 with the help of these professionals.

1 2 3 1 2 3

1 3 1 2 32

MOST VALUED PRO CONTRIBUTIONS IN HOME RENOVATIONS

© 2016 Houzz Inc.

The annual Houzz & Home study is the largest survey of residential remodeling, building, and decorating activity conducted. This survey covers every aspect of home renovation in 2015, from interior remodels and additions to home systems, exterior upgrades, and outdoor projects. This includes historical and planned spends, professional involvement, and motivations and challenges behind these projects, as well as planned activities for 2016. The 2016 Houzz & Home survey gathered information from 23,839 respondents in Canada and 229,541 respondents worldwide, representing the activity of the more than 40 million monthly unique Houzz users.

The Houzz & Home survey for Canada was sent via email to registered users of Houzz and fielded in May 27 - June 30, 2016. The Farnsworth Group, an independent market research firm, conducted the survey. The current report relies on responses of Canadian homeowners on Houzz (n=21,691) and Canadian homeowners on Houzz who renovated in 2015 (n=12,707).

Methodology

© 2016 Houzz Inc.

APPENDIX

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A. 2015 Renovating Homeowner Demographics

MARITAL STATUS EDUCATION

ANNUAL HOUSEHOLD INCOME

73%

11%

8%

6%

2%

1%

Married/In a civil union, spouse present

Living with a significant other/In a domestic partnership

Single

Divorced/Separated

Widowed

Other

31%

22%

19%

11%

9%

2%

1%

4%

Bachelor's degree

Some college but no degree

Master's degree/Professional School degree

Associate degree

High school diploma or equivalent

Doctorate degree

Less than a high school diploma or equivalent

Other

46% Have child(ren) living with them

21% 36% 43% Under

CA$75,000 CA$75,000 to CA$124,999

CA$125,000 or higher

© 2016 Houzz Inc.

B. Characteristics of Homes Renovated in 2015

YEAR BUILT

HOME TYPE OWNER-REPORTED HOME VALUE

5%

14%

31%

24%

12%

4% 5% 3%

2011- 2015

2001- 2010

1981- 2000

1961- 1980

1941- 1960

1921- 1940

1901- 1920

< 1901

84% 6% 4% 7% 20% 35% 45% Detached -

single family Townhouse or

row house Duplex, triplex,

quadruplex Other Under

CA$300,000 CA$300,000 to

CA$499,999 CA$500,000

or higher

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C. Links to Resources on Houzz Canada

PHOTOS FIND PROS PRODUCTS STORIES

Kitchen Architects &

Building Designers Furniture Most Popular

Bath Cabinets & Cabinetry Lighting Houzz Tours

Bedroom Design-Build Firms Home Decor Kitchen Guides

Living General Contractors Kitchen & Dining Bathroom Guides

Dining Home Builders Bath Products Decorating Guides

Outdoor Interior Designers

& Decorators Bedroom Products More Room Guides

Baby & kids Kitchen & Bath Designers Storage & Organization Remodeling

Home Office Kitchen & Bath Remodelers Home Improvement Architecture

Storage & Closet Landscape Architects & Landscape Designers Outdoor Products Landscape Design

Exterior Landscape Contractors Baby & Kids Garden Guides