“Long-term, I think the home construction market is going to remain strong, but the next six to 18 months, there will be some weakness,” said Moffatt, professor at Ivey School of Business. “We’re not going to see numbers like this continue.”
Moffatt added that financing costs for projects are going up amid a period of lower consumer demand – and the home renovation industry is already starting to feel the pinch of the cooling market.
More existing projects for home renovations in Toronto are being cut or cancelled. Inflation is at its highest level since the early 1980s, and with only interest rates to combat it, the future of the housing market is not spared in the central bank’s attempts to suppress inflation.
For instance, home contractor Anthony Sayers had a renovation project in Toronto with a budget cut almost in half upon the…