While fewer Canadian home owners are planning to renovate than in previous years, home improvement spending is on the rise, according to a study by RBC/Ipsos Reid.

The study shows renovation plans are down almost everywhere in Canada except for Saskatchewan and Manitoba.

According to the latest survey, 67% of Canadian home owners say they are planning to renovate over the next two years. This is down from 70% in 2006 and 76% in 2005. While intentions are down overall, renovators anticipate spending more on their renovations with the average spend moving to $9,850 from $8,982 in 2006 and $8,834 in 2005.

“Seventy-five per cent of homeowners in Saskatchewan and Manitoba are preparing to renovate within the next two years which makes this region of the country the only area where intentions are on the rise,” said Catherine Adams, vp, home equity financing, in a news release. “Another surprise for us was that homeowners on the prairies are also the most likely to finance their renovations by using the equity already built up in their homes.”

The study noted a steady decline in the number of homeowners who have completed renovation projects in the last two years, with the results going to 61% in 2007 from 65% in 2006 and 70% in 2005. Among those who renovated in the last two years, two thirds (66%) had a budget, but nearly half (43%) went over their budget. On average, those with budgets exceeded their budgets by 74%.

The RBC poll was conducted by Ipsos Reid between August 1 and August 7. The online survey is based on a randomly selected representative sample of 3853 adult Canadian homeowners.