The Canadian Home Builders’ Association (CHBA) has released a new research product focused on Canada’s residential renovation industry. Called the CHBA Renovation Market Index (RMI), the product provides a new indicator of the current and future health of a sector that employs more than half a million Canadians and represents over $107 billion in investment nationwide.
Modelled on the success of CHBA’s Housing Market Index (HMI), the RMI measures current renovation activity, activity expectations for the next six months, and the volume of client inquiries and project pipelines. As per CHBA, it was designed to inform policymakers, economists, financial analysts, industry stakeholders, and media about evolving market conditions.
“CHBA’s new Renovation Market Index fills a gap in the data about Canada’s residential construction industry,” said Kevin Lee, CHBA CEO. “It goes beyond the limits of available macroeconomic data to capture a more accurate view of the health of the sector. For example, while investment value in renovations appears to have increased slightly, when we take into account inflation, we see that renovation investment is actually down to levels not seen since 2013. Having this data will help provide a more accurate assessment of the industry, and where it can be supported.”
The inaugural release shows that renovators anticipate challenging market conditions in the first half of 2026. The RMI for the second half of 2025 posted an initial reading of 48.3 out of 100, indicating neutral overall conditions. Current activity is steady, but expectations for the near future are significantly weaker, with the Future Conditions Index averaging just 35.2.
Regional results reveal stronger sentiment in the Prairies and Atlantic Canada, while Ontario and British Columbia posted notably lower scores. These findings mirror trends in the HMI and underscore the connection between renovation activity and broader housing affordability challenges—particularly acute in Ontario and BC.
Meanwhile, more than 70 per cent of renovators reported concerns about their business outlook for 2026, aligning with Canadians’ broader uncertainty about their economic future. This uncertainty also tends to increase the prevalence of “fly-by-night” contractors who undercut legitimate businesses by avoiding taxes. As such, residential property owners are urged to always obtain a written contract for any renovation project, ensure proper permits and inspections are in place, and confirm that their contractor carries appropriate insurance.
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