House improvement concept. Rear view of Asian construction worker looking away.

CHBA Rolls Out New Renovation Market Index

Mar 26, 2026

The Canadian Home Builders’ Association (CHBA) has released a new research product focused on Canada’s residential renovation industry.

Called the Renovation Market Index (RMI), the tool gauges 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 tracks current renovation activity, six-month activity expectations, and the volume of client inquiries and project pipelines.

According to CHBA, it was designed to inform policy-makers, economists, financial analysts, industry stakeholders and the media about evolving market conditions.

“It goes beyond the limits of available macroeconomic data to capture a more accurate view of the health of the sector,” says CHBA CEO Kevin Lee. “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 RMI release shows renovators anticipate challenging market conditions in the first half of 2026. The second-half 2025 RMI posted an initial reading of 48.3 out of 100, indicating neutral overall conditions. While current activity remains steady, near-future expectations 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 trends mirror the HMI and highlight the connection between renovation activity and broader housing affordability challenges, especially acute in Ontario and British Columbia.

Meanwhile, more than 70 per cent of renovators expressed concerns about their business outlook for 2026, reflecting broader Canadian uncertainty about the economy. This uncertainty can increase the prevalence of ‘fly-by-night’ contractors who undercut legitimate businesses by avoiding taxes.