If you're planning a major renovation to your home, there are dozens of books, articles and websites to help you with your project. Make sure you get at least three quotes for the work, you'll be told. Ensure that you have a good working relationship with your contractor and that you are comfortable working with him, says the advice. Good planning will ensure success, you're promised.

But if you're planning a renovation in a housing hot spot such as the Greater Toronto Area, you may be lucky if you can get three contractors to even return your phone calls. The renovation market is so busy that you'll probably have to wait awhile before you can commence the renovation of your dreams.

The housing market in most of Canada's urban centres has been hot for the last couple of years, and studies show that when homes sales are high, the home renovation business gets busy.

Statistics Canada says residential renovations have increased significantly in the last couple of years, and Canada Mortgage and Housing Corp.'s annual survey about renovation intentions indicates that it will continue to be strong next year.

"It is estimated that a typical new homeowner spends $10,000 in the first year on furniture, appliances and interior and exterior finishes," says a study commissioned by the Greater Toronto Home Builders' Association (GTHBA) (www.newhomes.org). "But it doesn't stop there. Many owners improve their homes, even if it's just adding a rear deck or finishing the basement. In time, owners renovate or make substantial additions. The value of home renovation across Canada was estimated at $26 billion in 2001."

Despite the economic jitters in the stock market, housing in Canada has remained strong during the last couple of years. Those benefiting from the housing boom include not only real estate professionals and home builders, but home improvement retailers and manufacturers.

"Renovation spending had a total economic impact of more than $4 billion (in the Toronto area) and created the equivalent of 56,000 jobs" in 2001, says the GTHBA study.

It says that 265,000 people in the Greater Toronto Area are directly or indirectly employed by the residential construction industry, which is almost 10 per cent of all jobs in the GTA. That's more than the automotive industry, which has often been considered the major economic driver in the area. The GTHBA report says 37,300 new jobs were created by the construction industry between 1998 and 2001, much more than other industries.

That's the good news. The bad news is that when renovation is hot, there are always some sleazy people out to make a fast buck and give the industry a bad name by producing shoddy workmanship and committing fraud. Complaints in the home improvement industry have always been a serious problem, and recently the Ontario government introduced new legislation to provide better consumer protection. The legislation, if passed, would provide consumers with the right to cancel a contract if goods are not provided or services are not commenced within 30 days of the date specified in the contract. It also would increase fines for people who contravene the law.

The wide-ranging new consumer protection legislation would apply to many industries ranging from resale homes to travel to automotive sales.

The other problem facing Ontario's residential building industry is the shortage of skilled labour. Skilled workers such as carpenters, bricklayers, concrete formers and welders are aging and retiring much faster than they are being replaced. The average age of these workers is over 50.

The shortage has prompted the GTHBA to launch a pilot project with Human Resources Canada and Citizenship and Immigration, in which up to 500 qualified foreign construction workers will be allowed to enter the country during the next two years on a temporary basis.

The mandate of the program is to promote the recruitment of Canadians and permanent residents in bricklaying, house framing, form working, cement finishing and construction labour, while allowing employers to temporarily employ the foreign workers. The deal is to ensure that no qualified Canadians are refused work in favour of a foreign worker, and that in the event of layoffs, foreign workers will be laid off before Canadian workers. The wages and working conditions of the foreign workers will be the same as Canadians working in the same occupations.

So far the program is designed to bring workers only to the Greater Toronto Area, but officials say it could be expanded to include other parts of the province.

For those homeowners who are eager to get started with their renovations, there are two options. Visit your local home improvement centre and get started on the work yourself; or stick with the expert's advice and be patient until a reputable contractor gets back to you.

Published: November 7, 2002

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Jim Adair is editor of REM: Canada's Real Estate Magazine, a business publication for real estate agents and brokers. He has been writing about Canadian real estate, home building and renovation issues for more than 30 years. You can contact Jim at .