1 Economic Consulting CHBA Pulse Survey: Renovator Highlights Economic Consulting Peter Norman, Senior Director & General Manager Altus Group Economic Consulting CHBA Renovators’ Council March 4, 2010

2 Economic Consulting Pulse: what it is and how we do it  Mail survey  Typically 6-8 page questionnaire  Tracking questions, as well as new issues each survey  Sent to all CHBA builder members (new home builders, renovators)  External sponsors – CMHC and Natural Resources Canada  Analyzed by Altus Group Economic Consulting

3 Economic Consulting A valuable source of information about the homebuilding industry  Up-to-date monitoring - takes the “pulse” of the homebuilding industry  Gets the views of both new home builders and renovators  Trending – tracks how key aspects of the homebuilding industry are changing over time  Regional results - can look at variation across the country  Benchmarking - lets individual homebuilders gauge their performance against other builders  Fills the gaps – allows exploration of issues not covered by other sources that are important to the homebuilding industry

4 Economic Consulting Recent Pulse Highlights

5 Economic Consulting Renovators in all regions reported higher activity on average in past year… Source: CHBA Pulse Survey, Winter 2010 % of Renovators Change in renovation activity in last 12 months

6 Economic Consulting … and in general were relatively optimistic about increased work for the next year Source: CHBA Pulse Survey, Winter 2010 % of Renovators Expected change in renovation activity in next 12 months

7 Economic Consulting Almost two-thirds of CHBA builder members involved in renovation work to some degree % of Builders Source: CHBA Pulse Survey % of Total Revenues Generated by Renovation Work

8 Economic Consulting About 1 in 4 builder members generate at least half of revenues from renovation work % of Pulse Respondents Reporting at Least 50% of Revenues In Past Year Generated from Renovation Work Source: CHBA Pulse Survey n.a.

9 Economic Consulting This year’s top critical problems for renovators % of Renovators Source: CHBA Pulse Survey

10 Economic Consulting 2 in 3 renovation projects by CHBA/APCHQ members valued at more than $50,000 Source: CHBA Pulse Survey % of Renovators Average size: Average duration: $40,0006 weeks $40,000 6 weeks $50,0008 weeks $50,000 8 weeks

11 Economic Consulting Altus Group’s Outlook for Renovation Spending

12 Economic Consulting After more than doubling in previous 10 years, real renovation spending stalls 2002=100 (constant dollars) Source: Altus Group based on Statistics Canada data

13 Economic Consulting Homeowner renovation intentions improve markedly % of Homeowners Agreeing Completely Planning Renovations over $5,000 Source: Altus Group, The FIRM Residential Mortgage Survey

14 Economic Consulting % of Home Owners Agreeing Completely That They Plan to Undertake Renovations of At Least $5,000 in Next Year Renovation intentions by region Source: The FIRM Residential Mortgage Survey

15 Economic Consulting Home renovations, an estimated $55 billion industry Total Residential Renovation Spending, Canada, $Billions, Current * Includes conversions and repairs. Source: Altus Group Economic Consulting based on Statistics Canada data

16 Economic Consulting Key points for the renovation forecast  Positive:  Negative:

17 Economic Consulting Questions?