Housing crisis in Quebec
From Wikipedia, the free encyclopedia
Quebec's housing crisis (French: crise du logement, pénurie du logement, or crise du marché immobilier) is a speculative bubble that has severely affected the prices, quality and availability of real estate for people in Quebec and Canada since the 1980s. The average price of a home has risen from $48,715 in 1980 to $424,844 in 2021. This bubble has many causes. It also bears consequences for the quality of life of Quebecers and the economy of Quebec. As of 2026, municipal property assessments indicate that residential property values have continued to increase. A 2026 analysis of municipal roll data found that total assessed values have risen by about 55% since 2022. Assessed values may, however, lag behind current market conditions.[1]
| 1980
$48,715 (2,30 times more than the average revenue of $21,192) |
1990
$100,811 (2,81 times more than the average revenue of $35,822) |
2000
$113,291 (2,49 times more than the average revenue of $45,476) |
2010
$242,476 (4,09 times more than the average revenue of $59,237) |
2021
$424,844 (4,72 times more than the average revenue of $89,979) |
The average price of a single-family home doubles every 10 years, and salaries are not keeping pace with these increases. The low interest rates that took hold in the early 2000s, globalization and technology are all cited as having contributed massively to the surge in real estate acquisitions and the meteoric rise in prices.[2]
Cities in a critical state
Contrary to popular belief, the shortage is not at its worst in Montreal. The city most affected by this crisis is Granby, which in 2022 had a vacancy rate of 0.1%, followed by Marieville (0.1%), Rimouski (0.2%), Drummondville (0.2%), Rouyn-Noranda (0.3%) and Saint-Georges (0.3%).[3]
Causes
A variety of causes have combined to create and/or exacerbate the housing shortage in Quebec. These factors include: low interest rates, globalization, zoning,[4] the large amount of rules for new construction, not enough new constructions to meet demand,[5] low property taxes, high immigration, NIMBYs, corporations buying homes, Airbnbs, bidding wars, renovictions, real estate flips, snowwashing, the temporary foreign worker program, foreign students, and lack of government intervention and initiative, among others.
Consequences
Real estate bubbles have many consequences on society. Quebec may be affected in these ways:
- High housing prices force tenants to live in a lower-quality apartment, thereby diminishing their quality of life. This has a negative impact on mental health.[6]
- Families have less discretionary income.[7]
- The crisis makes it difficult for young adults to leave the nest and move to a new city to pursue job opportunities.[8]
- The crisis is causing labor shortages in some places as potential workers can't afford to move to the city.[9]
- Businesses receive fewer investments.
- The problem increases the disparity between rich and poor.[10]
- Birth rates fall as prices rise.[11]
Thesis of a systemic failure of public policy
For some observers, the housing crisis is caused by a systemic failure of public housing policies over several decades, and is linked to the federal government's decision to withdraw from housing construction in the 1980s. This thesis is echoed by former Canadian Deputy Prime Minister Sheila Copps. According to her, in the 1970s, federal housing policies saw the federal government become more directly involved in housing construction, including the development of housing for the elderly and aboriginals. This changed in the 1980s, when provincial governments assumed powers in housing policy. She argues that "when provincial governments got their money back (for housing), many of them didn't actually spend it on housing". She notes, however, that Quebec has often been the exception, using federal money to build social housing.[12]