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By: Karine Dutemple
Information and news on the construction sectorFreeland Budget: Benefits for The Property Sector
If you’re paying attention to the Canadian news cycle, you may know about the 2021 Freeland Budget. This is the first budget from Canada’s Deputy Prime Minister and Federal Finance Minister Chrystia Freeland.
The budget outlines billions of dollars aimed at getting the country to manage the rest of the pandemic. Now we're wondering, how does this affect the renovation and construction sector exactly?
This article offers a short breakdown of Canada’s Freeland budget and the benefits that it'll offer in terms of new pledges to expand affordable housing, fund home renovation projects, retrofits and so forth.
As mentioned, the Federal Government has unveiled a brand new budget, $101.4 billion dollars directed towards supporting the country in a Covid-19 relief effort. The budget titled “A Recovery Plan for Jobs, Growth, and Resilience” roughly breaks down to extend pandemic business and health support, $30 billion of that will go to a national childcare plan. Increasing the federal minimum wage is also on the horizon. Plus, there's $17.6 billion towards green investments in various sectors.
Freeland is moving forward with stimulus, a plan to spend around 4.2% of Canada’s GDP to deal with rebounding ourselves out of the current recession the country is facing. The budget is an attempt to “heal the specific wounds of the COVID-19 recession and to permanently strengthen Canada’s economic muscle” Freeland said. COVID-19 has exposed specifics discrepancies and gaps in the wages of women, low-wage workers, racialized people and young people. The Freeland budget is claiming to directly address these inequalities.
Now that we have a better idea about how the money is going to be allocated, let's take a look at how the budget impacts the renovation and construction sector.
Before we get started, here are some of our articles about useful grants and programs for your projects:
Freeland’s fiscal program will benefit those who work in the construction sector as well as homeowners taking on new renovations greatly. Not to mention, there is a large portion of the budget allocated to green recovery, which is good news for our home planet.
As a result of COVID-19, federal support geared towards businesses and individuals is needed for the rest of the year. Thus, the Canada Emergency Wage Subsidy, the Canada Emergency Rent Subsidy and Lockdown Support have been extended to September 25th. The estimated total for this is $12.1 billion.
Green recovery funding will range around $17.6 billion, which covers a wide range of expanded programs. Currently, Canada is on target to reduce emissions by 36 percent, hoping to reach net-zero emissions by 2050.
Further, the government has agreed to offer $4.4 billion to the Canada Mortgage and Housing Corporation. This is meant to encourage homeowners to complete deep home retrofits through interest-free loans. These can be offered in payments up to $40,000. The loans would be available to landlords and homeowners who intend to complete retrofits as identified through an EnerGuide energy assessment.
Another very exciting note is that the government has said they’re intending to build, repair and support 35,000 affordable housing units through a $2.5 billion dollars investment, as well as the reallocation of $1.3 billion. Also, acknowledging the work-from-home trend that's so prevalent as a result of our pandemic, the government is willing to relocate $300 million from the Rental Construction Financing Initiative to support the conversion of empty office spaces into housing. A thrilling prospect for those working in this sector with an interest in giving back to the communities that surround them.
There are other exciting benefits to the Freeland Budget that are on the periphery of the renovation and construction industry. For starters, the government has discussed the allocation of $1.4 billion to Infrastructure Canada to add to the Disaster and Mitigation Fund. This is important for areas impacted by wildfires, floods and includes the rehabilitation of stormwater systems.
Further, Indigenous infrastructural investments will take place, including $4.3 billion over the course of 4 years being put back into the Indigenous Community Infrastructure Fund, as well as an additional $1.5 billion over the course of 5 years that’ll cover maintenance and operations costs for community infrastructure in First Nations communities and on reserves.
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Last modified 2022-11-30
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Cynthia Laferrière • 15 Sep 2022
The growing number of urban residents from diverse cultural backgrounds is prompting cities to rethink how they manage various public spheres. The concept of the "smart city" came about a few years ago to improve public services and curb negative impacts caused by ever-increasing population sizes. Smart Cities: Quick Overview Simply put, a smart city has a positive impact on the community, fosters local development, and reduces the ecological footprint. These ideals are tailored to each community and the initiatives being implemented are achievable with the help of collected data and advanced technologies. To ensure the long-term sustainability of a community, one must reconsider urban development in terms of the quality of life and governance transparency. By using information communication technology tools, consistency between all services and active participation by citizens, businesses, and elected officials is far more attainable. Relying on accurate information regarding the daily use of public structures and services allows for innovative solutions based on real and verified needs. The Makings of a Smart City There are as many battles to fight as there are cities when it comes to creating smart communities. Nevertheless, they all result in a single objective: development. Since a truly smart city is unlikely, and all cities are looking at different aspects to establish their overall strategy, there's no standard set of guidelines. Nevertheless, three key factors come to light when faced with this goal. These main points are the economy, the environment, and the social dimension. However, each city initiates its efforts according to its specific circumstances and the needs of its population. This is logical, as no two cities have the same core infrastructure, size, history, financial resources, citizen age demographics, and so on. For example, one city will benefit from reducing its carbon footprint by implementing eco-friendly roofs and offering local amenities, while a neighbouring city will focus on improving citizen interactions through digital means. Source: Flickr Economic Aspect Several potential solutions are consistent with the vision of a forward-thinking city. Among these potential solutions are, just to name a few: Financial or other support for local businesses; Linking participants at all stages of a project (researchers, manufacturers, merchants, investors, etc.); Variety of training offered to students; Incentives to draw in companies with ethical practices; Digital upgrades for existing businesses to save money and improve workplace safety. Social Aspect A city connected with its citizens understands the new realities around which they revolve. However, to be inclusive, community leaders will have to be determined to find a way to create partnerships between public and private institutions and residents. Without the solidarity of citizens and genuine communication, municipal services may fail to mirror the population and, under the guise of good intentions, the divide will remain. A so-called smart city favours the use of collective intelligence, precisely to benefit itself. Moreover, a transparent administration results in a better quality of life and a shared sense of trust. Not only does this affect decision-making and project effectiveness, but also the city's capability when it comes to tackling a potentially problematic situation. Here again, technology can be used to improve community involvement. It can be as simple as creating a platform where people can access information regarding local news, upcoming projects and events. People could also give their opinion, register for classes, fill out surveys, report a problem, request permits, and so forth. What’s more, law enforcement agencies could have access to certain digital data to ensure civilian protection. Are you looking for general contractors to tackle your renovation project? Fill out our form to receive quotes from certified contractors! Environmental Aspect Managing water and heat islands is complex on many different levels and involves various parties. To sum it up, whether municipalities employ solutions such as blue roofs or incentives to reduce water consumption, or hire engineers to redesign entire structures, they’re all related to the objectives established by a smart city. Naturally, there are various and sundry ways to help the planet. Amongst other things, a city can establish laws or requirements which must be met during new construction or renovation projects. Cities can create urban developments that feature plenty of green spaces and functional roadways where proximity to resources and public transit converge. Smart cities can collect data concerning energy use and thus adapt their services accordingly, decide where to establish select infrastructures, or better allocate their budgets to tackle environmental issues. Community gardens can be created with collective compost bins... the possibilities are virtually endless. Source: Flickr A Few Examples of Smart Cities Mitchell, South Dakota: Emphasis on the use of digital technology in all areas, especially education. Christchurch City in South Island, New Zealand: Offers an innovative urban living environment, is attentive to the needs of citizens and has established a window portal for shared knowledge. Feldheim, Germany: Fully self-sufficient community in terms of energy due to their use of wind turbines, solar panels, and a biogas plant. Copenhagen, Denmark: Aiming to be carbon neutral by 2025. In closing, as with any project that entails a lot of technology, there's ongoing debate and opinions concerning ethical issues, democratic integrity and privacy. Yet, smart cities remain focused on a vision that advocates: Improving quality of life without stunting development; Social well-being while protecting dignity; Equality and inclusivity among the various parties involved in urban life, perhaps a participatory democracy; Benefits outweighing negatives, such as costs; ISO standards (infrastructure efficiency); Information and communications technology. For more information, check out this document (French only). Cover image source: Pixabay
Cynthia Laferrière • 24 Jun 2022
Progress, innovation, and environmentally friendly concepts are all part of the current culture in various industries, and the real estate industry is no different. When it comes to architecture, the possibilities are now only limited by your imagination. In fact, since the mid-1950s, one method of manufacturing has never stopped evolving: modular construction. In Quebec, more than 20 large and renowned companies have joined forces as part of an association (SQMH) and offer this type of structure, which leads to the construction industry's industrialization. Contractors, construction workers, and clients benefit from being informed about this type of building. Defining Modular Construction Based on the prefabricated house concept, modular construction, or industrialized construction (IC), is a system that is carried out in factories. It consists of a building designed with one or more modules that are transported to a building site and are then assembled on a concrete foundation. These modules are already equipped with the necessary elements such as electricity, interior finishing, plumbing system, and so on. The only remaining step is connecting the cables and pipes to the water and electrical services if needed. Purchased or leased modules can be used for long-term, fixed construction or for short-term use that can then be disassembled. Although widely used for commercial and institutional purposes, they are now becoming increasingly used for residential projects. Where to Find Modular Buildings Construction site bungalows and trailers. Occasionally, construction workers are required to permanently stay on-site while working. For their comfort and for practical purposes, buildings are temporarily set up on the periphery of the site and include bunkhouses, bathrooms, locker rooms, etc. Similarly, supervisors and administrative staff can benefit from temporary offices to manage the daily on-site operations. Photo: Flickr Utility buildings. If a school is renovating a section of its structure, some classes may be held in an off-campus building until the work is completed. Or, real estate brokers or construction workers may set up in a strategic location nearby during open houses. In the event industry, they are typically used for trade shows, sanitary facilities during festivals, conference rooms, and so on. Lastly, health professionals often need well-equipped and fully functional facilities such as medical offices, laboratories, and nursing stations. These buildings can be used following natural disasters, events to raise public awareness or to set up small neighbourhood clinics. Photo: Flickr Tiny homes. In this day and age, people are encouraged to be conscious consumers, and more people choose to live alone, therefore, the whole idea of modular construction is perfectly suited for tiny homes or for mobile home expansions. Photo: Flickr Larger projects. Cube or straight block houses with an industrial look, prefabricated businesses or industries, multi-storey buildings... Photo: giovanni gargiulo - Pixabay Manufacturing Process of Modular Buildings On the Quebec market, you can find home kits, prefabricated architectural houses, and eco-friendly modular buildings. Modular constructions are classified into two categories: 2D panels and 3D modules. The modules are easily and quickly assembled or disassembled, and can be placed side by side and configured according to your plans. The 2D panels are pre-assembled structures designed by the manufacturer. They do not require any actual fitting or integration; they are directly transported and dropped off at the destination, ready to be used. In the factory, the procedure starts with the frame and is then followed by flooring. The mounted walls will be supported by wood or steel structures. Next, the wiring and connections are made, followed by the installation of doors and windows. The modules are then transported to the building site where the inside is fitted and completed. Eventually, the partitions are inserted and stairs are put in if needed. Photo: Flickr Benefits of Modular Construction The most obvious advantage is its eco-friendly factor. In Quebec, building certifications are regulated according to standard CSA A227, and prefabricated buildings according to LEED and Net-Zero. Contrary to traditional construction, which is gradually built on-site, the environmental footprint of modular buildings is reduced since there is less transportation, waste, and land damage. Furthermore, the materials used are often recyclable, such as wood and steel. The prefabricated steel constructions respect an eco-friendly approach and established environmental standards. Another benefit is freedom from constraints. Materials are sheltered from rain and snow, thus protected from damage and problems associated with substandard quality such as warping. Also, building construction is not hindered by the weather. The project can therefore be completed 30 to 50% faster, in comparison to conventional methods. The workforce is stable, trained in the same way and operates in a controlled, high-tech, and clean environment. As a result, there is less risk of injury or inconsistent results, and the process is generally smoother. In addition, CNESST premiums are much lower than for on-site construction, since the work environment is safer for both the workers and the public. The next advantage is cost-efficiency. As previously mentioned, insurance and labour costs are reduced. In addition, steel is a very good price-quality option. Also, given the current cost of gas, it is worthwhile to make fewer trips. Since raw materials, and overall supplies, are available through a catalogue, contractors do not have to rely on the materials available from wholesalers. This avoids unforeseen purchases, costs, or fluctuating prices based on supply and demand or the concept of urgency. In other words, costs are much more predictable and can be as much as 30% lower than those of traditional construction. Ultimately, the advantage is the structure itself. Extensions can easily be added in the future and the modules are stronger than conventional structures because they are designed for transportation and craning. The design possibilities are almost endless and cater to all tastes. Various manufacturing or installation techniques for building components are facilitated by the automation of machinery and Building Information Modeling (BIM). Photo: Pexels Consider a modular solution whether you are a contractor or an architect, studying this trade, reluctant to build, or in need of a temporary facility.
N/A • 15 Sep 2023
The climate change issue is now more relevant than ever, and the construction industry is facing a critical challenge: reducing its carbon footprint. As such, net-zero emissions, meaning achieving a balance between carbon emissions generated by construction activities along mitigation efforts are now becoming a priority. In this article, we’ll delve into the different strategies and measures implemented to achieve this noble goal. Canada and Carbon Neutral Construction Source: Canva Canada is one of the most commitment-driven countries in matters of net-zero emissions. As a country, the goal is to become carbon neutral by 2050 and for that purpose, Canada has introduced several programs and policies to encourage construction companies to limit their greenhouse gas emissions. As part of a 2023-2024 Department Plan, the Canadian government listed promoting net-zero emissions in the construction industry as one of their priorities. The plan highlights the importance of implementing concrete measures to achieve this goal and help fight climate change. The Canadian Government’s Carbon Neutral Initiatives During the Americana 2023 environmental forum, the Government of Canada pledged its support to the province of Quebec in regard to its carbon-neutral transition. This announcement confirms the government’s willingness to actively support initiatives aimed at reducing carbon emissions in the construction industry. Financially assisting carbon-neutral construction and renovation building projects is a vital component of this assistance, which allows companies and individuals to implement sustainable technologies and practices. Further assistance may also be sought to reduce carbon emissions resulting from renovation work. In fact, some older buildings may have significant pollution issues requiring hefty renovations, if not demolition altogether. Decarbonated Construction: An Industry Priority Source: Canva The construction industry has come to recognize the importance of net-zero emissions. Builders and architects alike must turn to environmentally friendly materials, such as wood or recycled materials, as well as consider alternative, more sustainable and energy-efficient construction methods. Here are some of the planned vital measures: Shifting Toward Renewable Energy The construction industry is set to invest in renewable energy sources, such as solar, wind, and geothermal, to supply buildings with clean energy. Improving Building Energy Efficiency The province of Quebec is committed to improving construction standards in matters of energy efficiency and promoting low-energy building design and construction. This includes: insulation; windows with a high energy rating; heat recovery; etc. Using Sustainable Building Materials The construction industry will turn to eco-friendly building materials, such as wood gathered from sustainably managed forests, thus reducing the use of carbon-intensive materials like cement. Working with Innovative Technologies and Practices The industry is set to endorse innovative construction technologies and practices for the purpose of reducing carbon emissions, like using geothermal heating and cooling systems, automating building energy efficiency, etc. Training and Raising Awareness Raising awareness and training the main construction industry players on the following: climate change issues; net-zero emissions and; the best carbon-reducing practices. Collaborating and Partnerships The construction industry, in collaboration with the government, environmental organizations, and others involved, will develop joint strategies to achieve net-zero emissions. This will include: promoting sustainable solution research and development; developing suitable policies and regulations. These joint measures will allow the construction industry in Quebec to progress toward net-zero emissions while still meeting society’s construction needs. Carbon Neutral Challenges in the Construction Industry Source: Canva In Quebec, carbon-neutral construction faces a lot of hurdles: Current Construction Pratices The construction industry in Quebec is still very much governed by traditional building methods that significantly affect the environment. The building materials used, like concrete and steel, aren’t incredibly sustainable and emit a significant amount of greenhouse gasses during their manufacturing processes. Therefore, to reduce GHG emissions, building practices must be reevaluated. Sustainable Building Materials Available In Quebec, sustainable building materials, such as engineered wood, are still not commonly used in the construction industry. Given that fact, promoting the use of such materials to reduce a building’s carbon footprint is unavoidable. Current Energy Efficiency Standards Although Quebec has strict energy efficiency standards for new constructions, the latter aren’t always sufficient to achieve net-zero emissions. As such, it’s important to reassess and continue to promote these standards to advocate further the need to build energy-efficient structures. Lack of Specialized Training Construction professionals, such as architects and engineers, must be properly trained in carbon-neutral principles. As such, specialized training programs must be established to broaden the necessary skill set to design and build sustainable structures. Check out our article about Standards and Training to Further Green Building. Financial Costs Net-zero carbon construction may involve higher costs compared to more traditional building methods. Therefore, it’s important to find financial resources that can boost investments to develop sustainable solutions, thereby making net-zero emissions further achievable. The challenges faced require a comprehensive approach that involves construction industry players, governments, and research agencies. It’s important to find innovative solutions as well as adopt incentive measures to promote net-zero emissions in Quebec’s construction industry. The Advantages of Net-Zero Carbon Construction Source: Canva Despite its challenges, the benefits of net-zero emissions in construction are plenty. To name just a few: Reduces Greenhouse Gas Emissions Green building and net-zero emissions significantly reduce greenhouse gas emissions, thereby contributing to the fight against climate change. Improves Indoor Air Quality Net-zero emissions constructions are often equipped with an efficient ventilation system that improves indoor air quality, thereby reducing health hazards for occupants. Cuts Long Term Energy Costs Carbon-neutral structures are designed to be energy efficient, which, in turn, means significantly cutting down long-term heating, air conditioning, and electrical costs. Creates Green Jobs Transitioning toward carbon-neutral construction requires the expertise and know-how of skilled construction and energy efficiency professionals, thereby creating new job opportunities in renewable energy fields. Promotes Innovation Zero-carbon building often requires the use of innovative technologies and materials, thereby promoting research and development in the field of sustainable construction. Refines Company Brand Image Companies that commit to carbon-neutral projects benefit from a more positive environmental and sustainable image, which can attract a more involved and eco-conscious client base. Respects Regulatory Standards An increasing amount of environmental standards and regulations are established to promote carbon-neutral construction. By complying, Quebec’s construction industry players avoid potential sanctions and fines. In a nutshell, in the province of Quebec, net-zero emission construction has numerous advantages, from reducing greenhouse gas emissions to improving the quality of life of occupants, with significant energy savings and job opportunities in the field of renewable energy in between. It also allows companies to bolster their commitment to sustainability as well as comply with continually evolving regulatory standards. Heading Toward Net-Zero Emissions: A Sustainable Future Courtesy of the Construction Industry Net-zero construction is a key priority for Canada, which implements measures and initiatives to promote zero-carbon building practices. Despite lingering challenges, net-zero emissions offer numerous long-term advantages for the construction industry. By actively committing to this transition, construction workers and architects contribute to the fight against climate change and work toward building a sustainable future.
N/A • 06 Sep 2023
Last December, Mister Benoit Charette, of Ministère de l’Environnement et de la Lutte contre les changements climatiques (Ministry of the Environment and the Fight Against Climate Change), announced a ban against installing or repairing oil heating systems in residential homes. Furthermore, alongside this new directive, as of December 31, 2023, it’ll also be prohibited to replace oil-fueled boilers with heating devices that use fossil fuels in existing buildings. This initiative, which was endorsed by several municipalities in Quebec, targets reducing greenhouse gas emissions and promoting the use of clean and sustainable energy sources. As such, gas heating could be completely phased out of homes within the next few years. In this article, we’re going to look into the reasons behind this ban, what it means for residents and businesses, as well as possible natural gas alternatives. Why Is Replacing Oil with Gas Heating Banned? Source: Canva One of the primary drivers behind this ban is the fight against climate change. Natural gas remains a fossil energy source, and its extraction, transportation, and combustion generate significant amounts of greenhouse gasses, thereby contributing to global warming. By banning gas heating, the Government of Quebec is hoping to significantly reduce greenhouse gas emissions in residential and commercial areas. In fact, based on estimations, gas heating contributes to roughly 30% of greenhouse gas emissions in Quebec’s residential sector. By prohibiting this practice, the government is striving to further commit to a new strategy that aligns with its international obligations, as per the Paris Agreement, to reduce greenhouse gas emissions. What’s the Outlook on Gas Heating? Implementing a complete ban could mean significant ramifications for numerous residents and businesses. Truth be told, based on the data gathered from the 2016 Canadian census, about 31% of households in Quebec use natural gas heating. Therefore, it becomes all the more important for these residents to find alternative, and greener, options like electric heating systems, heat pumps, or solar systems. However, it’s important to highlight that this ban may not solely apply to gas heating, but also to gas stoves. This would mean that residents and businesses would also have to consider alternative options for their culinary needs. Similar actions have already been taken worldwide. Cities such as Vancouver and San Francisco have put a ban on gas usage in new buildings, while as of 2023, the state of California announced a complete ban on gas heating in new buildings. Are you looking for experts for your heating and air conditioning project? Fill in our form to be connected with top-rated contractors! How Will the Government of Quebec Reinforce this Transition? Source: Canva The Government of Quebec acknowledges the challenges facing residents and businesses alike. However, the Chauffez vert financial aid program was established specifically to help homeowners replace oil heating systems with more eco-friendly alternatives. In addition to financial assistance programs, the Government of Quebec is also proactively raising awareness among the population about the advantages of eco-friendly natural gas alternatives. This effort will be reinforced by the launch of an information and awareness campaign designed to encourage Quebec residents to favour environmentally sustainable heating and cooking solutions. To achieve this goal, it’s essential to emphasize the economic and environmental benefits of such alternatives, like: energy savings; reducing greenhouse gas emissions; and improving indoor air quality. Oil and Natural Gas Bans for a More Sustainable Future To conclude, the ban on gas heating in Quebec is a bold decision aimed at reducing greenhouse gas emissions and promoting a transition toward more sustainable alternatives. Although a decision like this surely means residents and businesses will face challenges, the Government of Quebec is striving to financially assist this transition as well as educate the public regarding the advantages of ecological alternatives.
N/A • 23 Aug 2023
Inflation significantly affects several economic sectors, and the renovation industry is no exception. Whether it be minor or major repairs or remodels, when the cost of materials, supplies, and services increases, it becomes much more difficult for homeowners to carry out renovation projects as intended. Aside from inflation, the extent of and the frequency of residential renovation projects are influenced by several factors, such as interest rates. Truth be told, the latter is instrumental in the decision-making process for renovations, particularly when it comes to project financing. In this article, we’ll take a closer look at the connection between inflation, interest rates, and residential renovation, highlighting the current economic impact and industry trends. The Impact of Inflation on Residential Renovations Source: Canva Inflation anchors down renovation plans Let’s start off by saying that the current state of inflation is hindering homeowners who are looking to undertake renovation work. While numerous homeowners became aware of the importance of improving their residences during the pandemic, labour and material costs are at an all-time high. This is caused by the lack of construction industry-specific labour as well as the rise of raw material costs. This situation renders renovation projects more expensive and deters some homeowners from moving forward with their projects. Contractors are even confiding that, over the past few months, some of their loyal clients have been having cash flow issues. To put some numbers on this global trend, according to the Association des professionnels de la construction et de l’habitation (APCHQ), after reaching record-blowing spending figures of 23.5 billion dollars last year, the renovation industry is expected to see a 15% drop in 2023, meaning 20 billion dollars overall. Therefore, experts are recommending planning renovation projects ahead of time and taking into account any additional costs related to inflation. Inflation alters job types and volume Inflation is curbing the demand for very minor and major renovation projects, and this same trend was confirmed by our company in 2023. This drop stems from several factors. Firstly, the pending state of the economy has led investors to adopt a different, more cautious approach. Furthermore, the COVID-19 pandemic has had a significant impact on the construction industry preventing numerous worksites from being created. In 2023, amongst the projects that are likely to be on the decline, small-scale residential renovations will be hit. Households affected by the health crisis are expected to cut back on home improvement or repair expenses. It’s said that so-called “medium-scale” renovation work will be amongst the most sought-after from contractors (projects ranging between $5,000 and $75,000). Overall, the province of Quebec has had and will continue to experience a rather slow year in regard to extensive construction worksites in 2023 and beyond. Given the precarious economic climate and the pandemic, an industry investment downturn is to be expected. Home Renovations and Higher Interest Rates Source: Canva Here too, the renovation demand was hit In Quebec, interest rates significantly impact the demand for residential renovations. When the interest rates are low, homeowners are more likely to undertake renovation projects, since financing costs are more affordable. Therefore, low-interest rates tend to trigger the demand for residential renovations, which drives the economic state of the industry. On the other hand, higher interest rates can hinder some homeowners from moving forward with their renovation plans, since financing costs also soar. Therefore, they’re likely to postpone or cut down on their intended renovations. In such cases, it can lead to a decline in demands related to residential renovation work, which impacts industry-specific companies. Interest rates: A matter of cost Aside from its impact on demand, interest rates also play a role in determining the cost of residential renovations in the province of Quebec. When interest rates are low, homeowners can apply for loans to finance their projects on more favourable terms. This can lead to a spike in material costs and renovation service fees, since as the demand increases, suppliers are forced to increase their rates to compensate. As a result, homeowners may find themselves spending more on their projects than intended due to soaring material and labour costs. On the other hand, when interest rates are high, financing costs increase, which can motivate suppliers to lower their prices to maintain demand. As a result, homeowners can benefit from increasingly competitive pricing during the course of their renovation projects. However, such a price drop can also affect a renovation company’s profit margin, which may ultimately have an adverse effect on the company’s bottom line. Despite Inflation, the Renovation Craze Lives On Source: Canva Despite inflation, the renovation craze is still well and alive amongst homeowners in Quebec, and the reasons for that are plenty. Improves quality of life Renovations can improve the home’s comfort and functionality, which in turn improves the dwellers’ quality of life. Even though costs can be steeper due to inflation, people are still willing to invest in their happiness and well-being. Increases property value Well-carried-out renovations can increase a property’s market value. As such, homeowners can be motivated to renovate to benefit from a potentially decent long-term return on investment, even if the initial cost is steeper due to inflation. Personal and household needs People have specific needs, like building an additional bedroom to accommodate a new family member, creating a home office as a result of the widespread work-from-home trend, or renovating a bathroom to meet accessibility requirements. These personal or household needs can rightly motivate a homeowner to renovate despite current inflation rates. Renovations over moving Some people prefer renovating their homes rather than moving. They might’ve grown attached to their neighbourhoods, their neighbours, or the memories created in their homes. In such cases, inflation can be seen as a temporary hurdle that’s unmatched by a homeowner’s love for their property. Access to loans and grants The Government of Quebec often makes low-interest rate grant programs available to encourage green or eco-friendly home renovation or improvements accessible. Such financial incentives can mitigate the impact of renovation cost inflation, which can encourage homeowners to move forward with their renovation plans despite inflation. Note that reasons to carry out renovations differ from one person to the next. Some might be more motivated by the financial aspect of it all, while others might be more inclined to do so for personal or practical considerations. How to Cut Renovation Project Costs Source: Canva Focus on small-scale projects Doing everything at once may seem like your best bet, but by focusing on critical repairs, you can cut back on material and labour costs. Don’t overlook the planning stages Don’t overlook the planning stages. While it may seem tedious, establishing a detailed plan prior to undertaking your renovation work will deter any last-minute changes that may end up being quite costly. Use recycled building materials Consider using recycled building materials. Not only will it reduce your environmental impact, but it’ll also end up being cost-effective compared to purchasing all-new materials. To learn more about this: How to Save Money on Building Materials Without Sacrificing Quality The Benefits and Uses of Recycled Concrete Take into account seasonal pricing Consider seasonal pricing. Certain materials and services end up being cheaper during certain periods throughout the year. Therefore, it’s worth planning your renovation project around. A Definite Impact on Renovation Work, but Demands Are Still High In a nutshell, needless to say, inflation significantly affects the renovation industry. Steep material, labour, and related service costs render renovation projects more expensive and, thus less accessible for many homeowners. Moreover, increased interest rates can also dissuade property owners from moving forward with repair work. Despite these challenges, some homeowners are still driven to renovate their homes to increase their property’s market value and improve their quality of life. Furthermore, due to inflation, limited demands make renovation contractors rather readily available. Therefore, it might be just the right time to contemplate carrying out the desired renovation work if you’re looking for a shorter-than-usual timeline.