CALGARY - Households in Calgary are expected to spend more on renovations than anywhere else in the country this year.

The average expected cost of a renovation in Calgary is $13,256, $1,825 more than the national average, according to the Renovation and Home Purchase Survey released Wednesday by Canada Mortgage and Housing Corp.

“Incomes in Calgary are among the highest in the country. This may contribute to the average expected cost of renovations in Calgary being higher than other centres in Canada as households have more to spend,” said Richard Cho, senior market analyst for Calgary for the CMHC.

The survey included: Calgary;

St. John’s, N.B.; Halifax; Quebec City; Montreal; Ottawa; Toronto; Winnipeg; Edmonton and Vancouver.

The report said the national average expected cost of renovation this year is $11,431. Vancouver was second to Calgary, at $12,750 with Toronto next at $11,881.

The survey said Calgary’s average cost of renovations dropped from $16,254 in 2008 to $13,087 last year.

An estimated 2.1 million households in 10 major Canadian centres completed renovations last year at an average cost of $12,100, according to the survey. More than $25.8 billion was spent on renovations last year in those cities, an increase of about

$4.5 billion from the previous year. In 2008, the national average was $12,598.

In those major markets, 43 per cent of those surveyed indicated they intend to spend $1,000 or more by the end of this year.

The survey showed that 48 per cent of Calgary households undertook renovations last year, which was up from 38 per cent the previous year. Also, six per cent of households in the city bought a home in 2009 compared with seven per cent in 2008.

CMHC’s survey said 43 per cent of Calgary households spent $1,000 or more on renovations in 2009 compared with 33 per cent in 2008.

Also, six per cent of Calgary households intend to buy a home this year, the same as in 2009.

And 43 per cent intend to spend $1,000 or more on renovations this year, down from 46 per cent in 2009.

“There are a number of reasons why the intent to renovate is slightly lower in 2010 compared to 2009,” said Cho. “Renovation projects tend to take place in older homes which are sold in the resale market. With resale activity moderating, this would naturally lead to fewer renovation projects. Some households also borrow money to carry out their renovating projects and with interest rates rising, this may temper the demand for renovations.”

A report by the economic consulting firm Altus Group said Albertans spent $5.3 billion in renovations last year, about 9.7 per cent of the Canadian total of $54.5 billion.

The report predicted spending growth of 9.3 per cent in Alberta this year, the highest in the country, but foresees a decline of 0.5 per cent in 2011.