A construction surge is needed to restore housing affordability in Montreal, says broker Royal LePage.
Housing affordability in Montreal has deteriorated since the start of the COVID-19 pandemic, a new report shows.
Residential real-estate prices in the Greater Montreal area soared 30.6 per cent between the fourth quarters of 2019 and 2023, broker Royal LePage says in its Price Survey and Market Forecast, released Monday.
Although the median price of a single-family detached Montreal-area home dropped 2.5 per cent in the last three months of the year, it nevertheless rose 4.7 per cent from 2022’s final quarter to reach $629,700, Royal LePage data show. Fourth-quarter condominium prices rose 1.1 per cent year-over-year to $450,200.
As a result, many Montrealers are suffering from “buyer fatigue, even discouragement,” he added. “People often say that the housing market is doing well — but for who, exactly? For the person who owns real estate, or for the one who wants to buy?”
Multiple increases in the Bank of Canada’s benchmark interest rate during the past 22 months have put a damper on real-estate activity in Montreal and elsewhere by pushing borrowing costs higher.
And because many five-year mortgage holders are facing renewals, the toll will only get heavier. A December study by the Bank of Canada found that without any income growth, the median borrower may need to dedicate up to four per cent more of their pre-tax income to interest payments by the end of 2027.
Some 30,171 residential properties in Greater Montreal were listed for sale last month, industry data show. While that’s almost double the December 2022 total, the number remains 47 per cent below the average of the past decade, Royal LePage says.
Quebec may need to build as many as 1.1 million housing units by 2030 to restore affordability in the residential market, the Canadian Mortgage and Housing Corporation estimated in a report published in September. The figures are based on population growth scenarios and residential construction projections.
Unfortunately, construction in the province isn’t keeping pace with residential demand. Housing starts in Montreal plunged 58 per cent during the first half of 2023 to 5,927 units, the lowest level in 26 years, CMHC data show.
Prospective homebuyers could get some relief in 2024 if interest rates start heading down. Many economists are now predicting that the Bank of Canada will keep its benchmark interest rate at five per cent in the first half of the year before starting to make cuts in the last six months.
Even so, St-Pierre cautions, lower interest rates alone won’t fix the affordability issue.
“In the long term, we are really going to need to solve the problem of housing inventory,” he said. “Lower rates are not going to make housing more affordable. The problem of affordability will only be solved through strong measures to increase the housing stock in Quebec and Canada. Without this, I don’t see how housing prices could drop significantly.”
Aggregate home prices in Greater Montreal are projected to climb five per cent year-over-year by the fourth quarter to $595,140, Royal LePage says in its updated 2024 forecast. The firm calculates aggregate prices by using a weighted average of the median values of all housing types collected. The numbers include both resale and newly built house prices.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
The Canadian Press. All rights reserved.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
The Canadian Press. All rights reserved.
VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.
Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.
The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.
Wednesday was the last day for advance voting, which started on Oct. 10.
More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.
Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.
An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.
This report by The Canadian Press was first published Oct. 17, 2024.
The Canadian Press. All rights reserved.
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