Home Renovation in Canada 2025 Update
Canada’s homeowners are showing increasing interest in renovating their homes not just to modernize, but to make their living spaces more sustainable, flexible, and energy-efficient. Rising material costs, government incentives, and shifting lifestyle needs are reshaping renovation priorities across the country.
Rising Costs & Spending Patterns
Nearly half of Canadians are now either planning, doing, or have recently completed home renovation projects.
The average expected expenditure for renovation is now about CAD 19,000, which is almost double the average in 2019 (around CAD 10,000).
However, renovation prices are trending upward: Canada’s Residential Renovation Price Index rose 0.9% in the second quarter of 2025 (up from 0.3% in Q1). Regions in the Prairies and Quebec are among those seeing the largest jumps.
Key Trends Shaping Renovation Choices
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Energy Efficiency & Sustainability
Homeowners are increasingly focused on reducing energy bills and environmental impact. Common upgrades include better insulation, more efficient windows and doors, and switching to heat pumps. -
Smart Home Technology
Integrating smart features is now expected in many renovation projects: thermostats, lighting, security, and appliances that adapt to usage. More homeowners want homes that are “future-ready” in this sense. -
Flexible / Multifunctional Spaces
Remote work and changing family needs are driving demand for spaces that can serve more than one purpose. For example, guest rooms that double as offices, or basements converted into media / gym zones. -
Aesthetic & Wellness Design
Natural materials, bold accents, biophilic design (bringing nature indoors with plants, wood, stone), spa-style bathrooms, and better daylighting are all popular. Canadians are also choosing designs that support wellness good ventilation, materials that don’t off-gas, natural light etc. -
Secondary Suites
Adding secondary units (for family, rental income, or multigenerational living) is on the rise. This helps with both affordability and maximizing property utility.