Long Term Home Value Trends
According to the Canada Mortgage and Housing Corporation (CMHC) and Canadian Real Estate Association (CREA), the average home price in Ontario has risen by roughly 7% per year. This steady increase adds value and equity to homes over time, underscoring the importance of strategic investments in renovations that bolster property value.
Choosing The Best Options For You
There is something to remember.
Even with the rise in construction prices, home valuations have increased consistently since the 1940s! Combining the natural increase in property value with a meaningful home renovation will lead to a positive return on investment over a period of time relative to:
- The amount the home is currently worth.
- The value and type of renovation you plan to complete.
- The natural increase in the real estate market here in Ontario that has been proven over the past 80 years*.
When considering renovations, it's essential to focus on areas that provide both high returns in terms of home valuation and improved quality of life. Some areas that stand out are:**
Landscape Renovation: 15-25% increase in home value upon completion.
Outdoor Living Structure: 30% increase in property value.
Outdoor Kitchen: 100 - 200% return on investment upon completion.
Pool: 7% increase in property value.
Kitchen: 80% return on investment upon completion.
Bedroom: 75% return on investment upon completion.
Bathroom: 75% return on investment upon completion.
Basement: 70% return on investment upon completion.
Looking Forward: The Impact of Inflation and Delayed Renovations
It's important to consider how inflation and rising costs will impact future renovations. The value of what you can achieve with a $100,000 to $200,000 budget today will effectively shrink annually as inflation continues year over year. Delaying a renovation may not lead to savings—costs are only expected to rise, reducing the purchasing power of your renovation budget over time.
Investing in a renovation now, not only secures today's pricing but also increases your home’s value immediately. This enhanced property value will benefit you from the estimated 7% annual growth, meaning your home appreciates from a higher baseline, compounding its value over time.
By acting today, you not only avoid future cost increases but also begin to realize the return on your investment right away.
Contact us today to get your spring and summer projects scheduled
289.439.0018
[email protected]
4696 Bartlett Rd
LandArt is a full service Landscape and Home Renovations company, providing a full design - Build approach for every client. Dedicated to Beautiful & Creative Design, Professionalism, and a Client-Centric Approach.
