Calgary's residential Renovation Tour is a no-show for the spring of 2005.

But don't confuse the cancellation of that event with any suggestion of a downturn in the renovation industry's health, insists David Litwiller, chairman of the renovation council, Calgary Region Home Builders Association (CRHBA).

A big fan of the CRHBA's Reno Tour held in March and October for more than 10 years, Litwiller says it's a great way for Calgary companies to showcase the growing sophistication of their work. The event typically features about six recently renovated homes and Litwiller, principal of Litwiller Developments Ltd., says there's enough public interest to add more homes to the tour.

Litwiller, who says his own renovation business is busier than ever, says it's tough to cite a specific reason why this spring's event was cancelled. But he discounts the notion that renovators are "too busy" to participate. With 28 years tucked under his own business belt, Litwiller says the tour is a proven way to generate new contacts and more work. "When you're busy is when you advertise," says Litwiller, who's hopeful the Reno Tour will be back on track this fall.

Dave Olecko, Business Edge
Renovation Council chairman David Litwiller hopes fall tour will be back on track.

Between now and then, Calgary's residential renovation industry expects business to be good, with all market indicators foreshadowing continued strength. According to an industry survey conducted by the Canada Home Builders' Association in December 2004 and January 2005, 56 per cent of Alberta renovators reported increased activity over the course of 2004. Overall, Alberta renovators predict further increases in residential renovation activity for 2005.

That same survey says the average cost of a residential renovation project in Alberta hit $60,000 last year and took 12 weeks to complete.

This year, Calgary's residential real estate industry expects to post the nation's highest MLS sales levels. New home construction will drop, with Canada Mortgage and Housing Corp. (CMHC) predicting declines in single- and multi-family housing starts, says Richard Corriveau, a senior market analyst with CMHC.

Based on supply and demand, "we believe the marketplace should cut production 13 per cent" over 2004 levels, Corriveau says.

But most of the 7,600 new homes CMHC predicts will be built in Calgary this year will not include finished basements. Other industry research shows people often decide to renovate within three years of buying a previously owned home. Both market indicators signal a solid future for renovation activity and the CMHC anticipates Alberta will lead renovation spending on the Prairies for 2005.

Using statistics that factor in home repairs and improvements (everything from major renovations to new paint and picture nails), renovation spending in Alberta is expected to hit $3.3 billion in 2005, up from $3.2 billion in 2004. Alberta is behind British Columbia, Ontario and Quebec, a fact Corriveau attributes to raw housing numbers.

Current challenges faced by Calgary's renovation industry include ongoing labour shortages and the need to keep pace with an increasingly well-informed consumer in search of more sophisticated and top-quality products. A journeyman carpenter himself, Litwiller's personal commitment to the next generation of renovators includes making room on his crews for apprentice carpenters.

To aid with the second issue, Litwiller works with independent interior decorators/designers who guide clients through the details of a renovation project, providing professional advice on everything from wall colours to window coverings and lighting. Litwiller admits this aspect of the renovation industry has become more important over time.

Siobhan Farrer of Decorating Concepts agrees with Litwiller's contention the interior decorating industry has shaken off the notion that interior decorating or design is for the wealthy. These days, people appreciate how the expertise of a well-trained decorator, designer or architect saves money and frustration by helping clients get the look they want and can afford, says Farrer, whose business includes a lot of renovations.

She attributes the strong interest in interior decorating to two main factors: Concern about maximizing resale value and interest in decorating a home to meet the esthetic needs of its current residents. Whereas resale value might once have prevented some people from making the changes they want, people are now more apt to see value in having their homes look the way they want them to look. Clients may plan to sell a home in a couple of years, but "two years is still two years," says Farrer.

A growing sector of her residential interior decorating business comes from a repeat clientele of people she's already guided through at least one major residential renovation. Second- or third-time clientele may just want to update colours and textures. They enlist Farrer's expertise to ensure their choices are ones they can live with well into the future - or at least until the decorating bug bites again.

"It's almost like I'm the neutral party," says Farrer, who helps homeowners mediate decisions about colours and product.

A strong residential reno market tends to bring newcomers to the renovation industry. Litwiller says that's good news in terms of competition, but it heightens the need for consumers to make sure they know what they're getting when they hire a company. He recommends consumers check out the free information available from the CRHBA.

Web watch:
www.crhba.com

(Joy Gregory can be reached at joy@businessedge.ca)