'100% higher or more': High material costs biggest challenge for contractors

Renovation costs still high As CTV's Mason DePatie reports, demand for renovations remains high as contractors and customers are being forced to pay more for materials.

As demand for renovations remains high, contractors and customers are being forced to pay more for materials.

The City of Winnipeg issued nearly 9,840 building permits in 2022. While not quite as high as the 11,344 issued in 202, it still shows construction in Winnipeg is holding strong.

An idea reinforced by the 15,000 people who attended the Home Renovation Show over the weekend.

"Just getting some ideas for doing some renovations down the road," said Harvey Lohnes, who was at the show on Sunday. "Not sure when we're going to do them, but getting some ideas so at least we have something in our head."

"We have a bay window we need to knock out, and we are looking at getting a gas fireplace," said Fred Winkler, who was also at the show.

Darrell Goulet, the owner of MG Cabinets, said business boomed during the pandemic.

He said demand remains high, except he isn't bothered by the major supply chain issues he faced a year ago.

"Much less supply issues," said Goulet. "I haven't seen as much as before, but it's still a little bit there, but not like it used to be."

Contractors are still battling one issue -- the cost of materials.

Goulet said prices skyrocketed during the COVID-19 pandemic and, with the current level of inflation, never really went back down.

"Compared to pre-pandemic, yes. I'd probably say 100 per cent higher or more," he said. "They are starting to stabilize from what I've seen, at least."

It's an issue Galay Landscaping has also noticed.

Owner Gordon Galay said it's an extra cost customers have to consider when starting a project.

"We try and be as lean as we can, but ultimately, it does get passed on to the consumer in some way, shape or form, but we try our best to mitigate that," said Galay.

People wanting to pay for renovations using credit or a loan could also be stuck paying more, as interest rates remain the highest since 2008.

Since March 2022, the Bank of Canada has raised its key interest rate seven consecutive times, bringing it from 0.25 per cent to 4.25 per cent.

A factor that isn't stopping people CTV News talked to from committing to their renovations.

"I'm 65, and I want to enjoy my house for as long as I can, so why not now?" said Winkler.

"You know, if I got to do it I got to do it," said Lohnes. "I understand. I'm in a business where I know supply and demand is there."

The Home and Garden show will return to Winnipeg in April.