Montreal's real estate market is undergoing a significant transformation in recent years, with a noticeable shift in the number of homeowners and renters. Understanding the trends and factors influencing this change is crucial for individuals and families seeking housing in Montreal.

Decreasing trend in homeownership

Data reveals a declining trend in homeowner occupancy rates in Montreal. In 2021, the homeowner occupancy rate in Montreal was 59 %, a 2 % decrease compared to 2016. This decline is particularly observed among young adults and families.

Factors behind the decline

Several factors contribute to this decrease in homeowners in Montreal :

• Rising property prices : The rapid increase in property prices in Montreal makes homeownership more difficult, especially for first-time buyers.

• High mortgage costs : Rising mortgage interest rates are increasing the financial burden of home ownership, deterring some potential buyers.

• Growing appeal of renting: Renting offers greater flexibility and mobility, particularly attractive to young people and families starting out.

• Shortage of affordable housing : The supply of affordable housing in Montreal is inadequate, limiting homeownership options for moderate-income households.

Proportion of homeowners and renters

In 2021, the proportion of renters in Montreal will be 41%, compared with 59% of owner-occupiers. This breakdown highlights the growing importance of the rental market in the Quebec metropolis.

Why renting has become so expensive in Montreal ?

The surge in rental prices in Montreal can be attributed to several factors :

• High rental demand: Rental demand in Montreal significantly outpaces available supply, creating pressure on prices.

• Low vacancy rates : The vacancy rate for rental properties in Montreal is historically low, giving landlords more leverage to set rental prices.

• Investment properties : Montreal's attractive real estate market attracts rental investors, who can contribute to rising rents.

• Lack of affordable rentals: The insufficient supply of affordable rental units forces tenants towards more expensive options.

Difficulties in finding housing in Montreal

Access to housing in Montreal has become a challenge for many potential renters and buyers due to :

• High prices : The high cost of properties and rent makes finding affordable housing difficult for low- and middle-income households.

• Increased competition : High rental demand means intense competition for available housing, making the search for a home arduous and stressful.

• Strict landlord requirements : Some landlords impose strict requirements on potential tenants, limiting access to housing for certain groups.

• Housing discrimination: Instances of housing discrimination persist, hindering access to housing for certain individuals.

Conclusion

The trend in the number of homeowners in Montreal, marked by a decrease and an increase in the number of renters, reflects a real estate market in the throes of transformation. High prices, insufficient supply and strong demand are contributing to the difficulty of accessing housing, both for purchase and rental. Policies and measures to increase the supply of affordable housing and regulate the rental market are needed to improve housing accessibility for all Montrealers.

Remember to check our blog for more informative articles on the Montreal real estate market.

The CYRUSS Team