Jessica Tranquilli poses for a portrait in front of her renovated home in Ottawa. She and her husband faced the difficult decision of renovating their home, or relocating as retirement approached.Keito Newman/The Globe and Mail
Jessica Tranquilli was ready for a change. After nearly three decades in her Ottawa home, the wear and tear of the single-family house built in the 1950s had become hard to ignore. In 2017, as retirement approached, she and her husband faced the tough decision of whether to renovate their current home or move.
They decided to purchase a preconstruction condo closer to downtown, hoping for a fresh start. But by 2022, the condo project was facing major delays. “We had every intention of moving in if it had been ready when promised,” Ms. Tranquilli says. “But after a few years, that didn’t happen. I started having second thoughts about condo living.” While the condo promised modern amenities, she began considering the trade-offs – less space for the big Sunday dinners she loved hosting and limited guest parking.
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She knew her house needed work but began reflecting on the benefits of staying – its location near green spaces and proximity to family. “We started asking ourselves: What would it actually cost to stay?” Ms. Tranquilli said. Not long after, they decided to renovate instead.
Choosing whether to renovate or relocate is a common dilemma for homeowners who have lived in the same place for decades. As lifestyles and needs change, many must weigh the emotional and financial costs of upgrading their current homes versus starting fresh elsewhere.
A 2024 CIBC study found that 49 per cent of Canadians were planning, undertaking or recently completed renovations, with 60 per cent saying they’d rather renovate than sell. Rising living costs and high real estate prices have been key factors motivating many to stay put.
Ms. Tranquilli poses for a portrait in an outdoor dining shed at her home. She and her husband decided to renovate their home instead of move after experiencing condo delays.Keito Newman/The Globe and Mail
But opting to stay and renovate also comes with costs. The same study found the average expected renovation expense is now around $19,000 – nearly double the $10,000 reported in 2019. Costs can vary widely depending on factors such as location, the type and scope of work, the time of year, and whether homeowners hire professionals or do the work themselves.
Cosmetic updates, including painting or trims, may range from $500 to $3,000, while major structural repairs can exceed $50,000. Unexpected challenges, such as outdated wiring or water damage, can also increase expenses.
Shaleni Henriquez, a realtor based in Milton, Ont., says changing lifestyle needs often drive homeowners’ decisions, making this a key starting point when weighing their options. She works with clients by first understanding what’s motivating the move – whether it’s aging, a growing family or shifting financial circumstances. For example, a retired couple may want to downsize to reduce maintenance, while a blended family might choose to renovate to add space and improve functionality.
She advises homeowners to make a detailed cost comparison between selling and renovating, noting that while buying a new home may feel like a fresh start, it also comes with added expenses. These include realtor commissions, typically ranging from 3 to 5 per cent of the sale price, and land transfer taxes, which can be especially high in certain in-demand areas.
“If you’re buying in Toronto, for example, you’re paying double land transfer tax,” Ms. Henriquez said. Other costs to consider are legal fees, moving expenses and potential staging or repairs needed to prepare the home for sale.
Ms. Tranquilli says renovating her home saved her money compared to buying an unfinished condo.Keito Newman/The Globe and Mail
If a homeowner decides to stay and renovate, Ms. Henriquez advises having a clear financial plan with a contingency – especially with older homes. “I always tell clients to expect surprises,” she said. “Budgeting without a buffer is risky. You could open a wall and discover outdated electrical systems that need replacing.”
When Ms. Tranquilli started renovating her basement, she discovered insulation that had been damaged by mice, leading to a full overhaul of the wiring and plumbing down to the foundation. What began as a few targeted repairs quickly expanded. After spending several months away during the initial work, she returned to find the updated areas made the rest of the space feel even more dated, prompting her to continue renovating throughout her home.
But she stresses that her ability to renovate this way was shaped by her life stage and financial position. “At this point, the investment isn’t about resale. If we were in our 30s or early 40s, still building our careers, our priorities would have been different. We wouldn’t have chosen high-end finishes or taken on such a major renovation. Now, it’s about comfort and lifestyle.”
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For some, moving is the better option. In 2021, April Dyck found her three-bedroom bungalow in Saskatoon had become too small for her growing family. When she and her husband found a larger home with a bigger lot, an ensuite, and room for a garage, they seized the opportunity.
Even after deciding to move, Ms. Dyck sees the value in renovating to personalize a space and build equity – something she learned through past renovation projects. “With every move, we’ve traded up to what we could afford while adding value through thoughtful renovations,” she said.
That experience gave her a clear sense of each home’s after-repair value. “By steadily increasing our home’s value, we’ve been able to tap equity to fund renovations or move on to the next place.”
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She says the larger home offered a better environment for raising their family in their desired neighbourhood, while her husband enjoyed the garage space for his car-fixing hobby.
Looking back, Ms. Tranquilli says staying and renovating was the right decision for her, but emphasizes the importance of doing one’s homework. Before renovating, she received quotes from two contractors, which she described as “through the roof.” But after digging deeper, she found one bid that was half the cost.
She says staying in her home ultimately saved her money compared to buying the unfinished condo – but what’s truly priceless is the community and continuity of living in a home tailored to her taste.
“We now have a beautiful home and garden,” Ms. Tranquilli said. “It’s truly made our lives better.”
Renovating allows Ms. Tranquilli to cater her home to her tastes, while maintaining her community.Keito Newman/The Globe and Mail
