A “severe” deterioration in property access in the greater Montreal area

Access to home ownership has been restricted in the greater Montreal area, while the median selling price of single-family homes on the island of Montreal has skyrocketed 71% over the past five years.

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From this it emerges Portrait of the housea report just released by the Montreal Metropolitan Community (CMM), which brings together 82 communities in the greater Montreal area.

“Given the current context, the shortage and the need to optimize the space available without encroaching on the natural and agricultural environment, it is imperative to plan housing development well,” said Mayor of Montreal Valérie Plante, the also President is from MWC.

Property price increases began to accelerate around 2017, reaching record highs during the pandemic period. Greater Montreal would be one of the North American regions hardest hit by the phenomenon.

The report notes that there have been “too few” homes for sale relative to demand since that period. For 2021, it would have taken “between 24,000 and 32,000 additional homes for sale to achieve a balance of 8 to 10 sellers per buyer,” the current ratio is 2.4.

On the island of Montreal, the median selling price of single-family homes has skyrocketed 71% to $722,500 over the past five years.

“In 2021, it will be virtually impossible for renter households in the region earning $59,000 a year or less to purchase an affordable single-family home on the island of Montreal,” reads the audit report.

“Even for a household with an income of $100,000 – which puts it in the top 20% of renter households – [seulement] 30% of homes for sale on the island of Montreal could be considered affordable.

The median condo cost in the greater Montreal area also rose 47% to $431,500.

“Still on the island of Montreal, no category of condominium is affordable for a household earning less than $48,000,” we read.

CMM analysis shows that home prices have increased by 90% since 2011, while household income has increased by just 40% over the same period.

An increase affecting housing construction

According to CMM, households with annual incomes under $50,000 are finding it increasingly difficult to find housing without spending more than 30% of their gross income on rent.

“The rapid rise in rental costs has weakened the economic situation of many households in the greater Montreal area, and the general increase in housing costs could impact the area’s attractiveness,” the report warns.

More than a third of renter households in the CMM spend more than 30% of their salary paying rent, and about 15% spend more than 50% of their income on it.

Several apartments have been built in the last two years. However, the rental price for a two-bedroom unit is around $1,500, while it’s closer to $930 for the rest of the rental market.

“A direct consequence of the lack of affordable housing is that many low-income households are forced to live in poorly maintained, even unsanitary, housing,” the report pointed out, but noting that “little data is available on housing sanitation Are available.

Expected growth

By 2041, there are expected to be 243,000 new households in the greater Montreal area, according to projections made by the CMM with the Institut de la statistique du Québec (ISQ).

“Projected growth based primarily on international immigration in the central sectors and intra-metropolitan migration in the crowns,” it says.

The report notes that many households that spent part of their lives in Montreal as young adults “tend to migrate to more remote areas” with the specific goal of gaining access to property.

However, these are being replaced by new households, mainly through immigration.

The result of these various movements makes the island of Montreal the sector of the CMM “experiencing the strongest demographic growth in absolute terms”.

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