Canada’s homeowners are spending more on renovating their existing homes rather than buying new ones.

That’s according to figures from the Bank of Montreal which show that for the 12 month period to the end of June 2014, spending on renovation was $48.4 billion while spending on new home construction was $46.3 million.

Reasons for the uptick in renovation include the inability of homeowners to trade up due to high costs and also the ageing population choosing to stay in their current homes and make improvements.

Although this may sound like a problem for the construction (and mortgage) sectors, experts point to the growth in population creating extra need for new homes.

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