As housing market drama continues to bubble in major Canadian metro centres, there’s another boom worth noting for the small business community: renovation and contractor services. According to the real estate firm Altus Group, Canadians spent $70.1 billion on renovation projects in 2015: Altus forecasts that figure to climb to $71.4 billion this year. Small businesses that cater to the market for home renovations are poised to make a boon out of what, for many Canadians, has become a significant challenge.
It seems that two forces are driving this acceleration: one is that, simply, fewer people can afford to move into a new dwelling as opposed to doing work on their current one. The other is connected to Canada’s shifting demographic landscape. Survey data by Pew Social Trends indicates that for young adults, living with a parent is the most common living arrangement for the first time on record – with 32% of respondents between 18 and 34 indicating that they lived with a parent. The population of Canadian homeowners is aging, and there are fewer new, young homeowners seeking to buy property. Even new homeowners may seek to add extensions in order to supplement their longer term income with the revenues from subletting.
In light of this trend, contractors and businesses specializing in the business of home renovation should stand up and take notice. Financing is available to help your business scale to the needs that arise from high volume work – and for those looking to start making their way in the industry. Finding the right financing option that keeps your cash flow stabilized is key to keeping your business running smoothly.