Autopsy of the housing crisis

House prices explode, affordable housing is scarce… Montreal is in the midst of a housing crisis. If we comfort ourselves when we compare ourselves, the situation is no less worrisome for many households. With population growth picking up, it remains to be seen whether housing construction will be sufficient to meet the needs. Here is some data from the comprehensive “Portrait of Housing in Greater Montreal” just released by the Montreal Metropolitan Community (CMM).

Posted at 06:00

Isabelle Ducas

Isabelle Ducas
The press

4.6 million


PHOTOGRAPH ROBERT SKINNER, LA PRESSE ARCHIVES

In 2021, the Montreal Metropolitan Community (CMM) numbered 4.1 million people.

This is the projected population of Greater Montreal in 2041, according to forecasts from the Quebec Institute of Statistics (ISQ), which will represent 48.7% of Quebec’s population. In 2021, MWC had 4.1 million people. This increase will mainly be based on international immigration in the central sectors and on intra-urban migration in the suburbs.

243,000

This is the number of new households expected to settle in the Montreal region over the next 20 years, according to ISQ growth forecasts, or 12,150 households per year.


INFOGRAPHIC THE PRESS


INFOGRAPHIC THE PRESS


INFOGRAPHIC THE PRESS

23,500

Number of new homes built on average per year in the region since 2016. Despite the pandemic and demographic decline seen between 2020 and 2021, the number of homes in the region continued to grow, reaching peaks unparalleled for more than two decades in 2021, in the Montreal metropolitan area and in the northern crown.

Between 2020 and 2021, the average rent in the region has increased by 3.7%. For the third consecutive year, the annual increase is significantly higher than the average of the last 20 years (2.8% for the period 2002 to 2021). In the main geographic sectors of the region, this increase was 4.7% in Longueuil, 3.7% in the island of Montreal, about 3.5% in the suburbs and 2.7% in Laval. […] In 2021, the average rent for a two-bedroom unit in the CMM’s territory was $935, but reached $1,140 for vacant units, so available for rent.

Excerpt from the “Portrait of Housing in Greater Montreal” by the Montreal Metropolitan Community

200,000

Number of low-income renters who have problems with the affordability of their home. About 8% of tenant households live in homes in need of major repairs, and 10% live in crowded homes.


3%


PHOTOGRAPH DAVID BOILY, LA PRESSE ARCHIVES

In 2021, the average demand rent for a two-bedroom unit available to rent in CMM territory was $1,140.

Vacancy rate for rental properties in Greater Montreal, which represents the equilibrium rate. This percentage was 1.5% in 2019. However, this percentage is lower in the North Crown (0.4%), in the South Crown (0.9%), in the Longueuil conurbation (1.2%) and in Laval (2.2%) than in Montreal (3.6%). In the center of Montreal, the vacancy rate is much higher: 7.9%. Vacancy is lower than average for the cheapest units: 2.8% for rents $750 and under, and 2.3% for rents from $750 to $940.

20,000

Number of units or rooms in Greater Montreal that were advertised on the major short-term rental websites (Airbnb and VRBO) before the pandemic rather than in the traditional rental market.

Increase in prices in the resale market for single-family homes, for the period of 4and quarter 2019 to 4and quarter of 2021 in Greater Montreal, while the price of condominiums rose by 32%. Since the early 2010s, house prices have risen twice as fast as household incomes.

+ 47%


2%


PHOTOGRAPH DAVID BOILY, LA PRESSE ARCHIVES

Since the beginning of 2010, the price of residential real estate in Greater Montreal has risen twice as fast as household income.

Share of condominiums in the region owned by non-residents, a phenomenon that mainly affects downtown Montreal.

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