Housing crisis in Quebec
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.
Historical average for the price of a single-family home
[edit]![]() | This section needs to be updated.(March 2024) |
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.[1]
Cities in a critical state
[edit]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%).[2]
Causes
[edit]A variety of causes have combined to create and/or exacerbate the housing shortage in Quebec. These factors include: low interest rates, globalization, zoning,[3] the large amount of rules for new construction, not enough new constructions to meet demand,[4] 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
[edit]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.[5]
- Families have less discretionary income.[6]
- The crisis makes it difficult for young adults to leave the nest and move to a new city to pursue job opportunities.[7]
- The crisis is causing labor shortages in some places as potential workers can't afford to move to the city.[8]
- Businesses receive fewer investments.
- The problem increases the disparity between rich and poor.[9]
- Birth rates fall as prices rise.[10]
Thesis of a systemic failure of public policy
[edit]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.[11]
Most affected populations
[edit]Indian Reserves
[edit]The housing crisis is particularly acute on Indian reserves in Quebec, but also across Canada. According to public data, "in 2011 [...], there was already an estimated shortfall of between 40,000 and 80,000 housing units on reserves. As a result, many Aboriginal people are living in overcrowded homes, with all the social problems this can entail". In a report presented to the UN General Assembly, Leilani Farha described housing conditions as "abominable".[12] Indian reserves fall under federal jurisdiction and are not subject to legislative action by Quebec provincial legislators.[13] That said, the Inuit of Quebec face similar problems,[14] but they don't live on reserves, and their villages have municipal status.[15]
Single mothers
[edit]Women who are single parents can find it difficult to pay for the rent and children on only a single income. Furthermore, many women who find themselves trapped in a dangerous situation, such as with a violent spouse, have no way out available to them because of the high cost of housing.[16] Shelters are also as overcrowded and in demand as housing itself. In Canada, 43% of single-parent women have housing that is inadequate for their needs or that is unaffordable.[17]
The introduction of new social policies, such as family allowances, health care, disability benefits and parental leave, are solutions proposed by governments that are not very effective in this case because they are based on a nuclear family model.[18]
A better solution for single mothers is the creation of social housing. These are more suited to the needs of single mothers, and enable better integration into communities. However, its difficult to find funding or land for social housing.
See also
[edit]- Canadian property bubble
- Flipping
- California housing shortage
- Affordable housing in Canada
- Affordable Housing and Groceries Act, Bill C-56
- Public housing in Canada
References
[edit]This article has been partially or totally translated from the French-language article Crise du logement au Québec.
- ^ Cyr, Guillaume (2022-03-10). "Les propriétés sont presque 10 fois plus chères qu'en 1980, mais les revenus ne suivent pas". 24 heures (in French). Retrieved 2022-07-16.
- ^ ICI.Radio-Canada.ca, Zone Société-. "Crise du logement au Québec : " On a perdu le contrôle "". Radio-Canada.ca (in Canadian French). Retrieved 2022-07-16.
- ^ "The Impact of Zoning on Housing Affordability — Zell/Lurie Real Estate Center". Retrieved 2022-07-16.
- ^ Burling, James (2021-07-08). "The solution to high home prices: Build, baby, build". Pacific Legal Foundation. Retrieved 2022-07-16..
- ^ Watt, Julie (2019-01-24). "Mental Health Effects of Precarious Housing". Habitat for Humanity Halton-Mississauga. Retrieved 2022-07-16.
- ^ "The impact of housing affordability on families". Cost of Home. Retrieved 2022-07-16.
- ^ iClic (www.iclic.com). "La crise du logement: un enjeu de taille pour les jeunes adultes". EnBeauce.com (in French). Retrieved 2022-07-16.
- ^ Hsieh, Chang-Tai; Moretti, Enrico (April 2019). "Housing Constraints and Spatial Misallocation". American Economic Journal: Macroeconomics. 11 (2): 1–39. doi:10.1257/mac.20170388. ISSN 1945-7707.
- ^ "Four ways today's high home prices affect the larger economy". Urban Institute. Retrieved 2022-07-16.
- ^ "Higher Rent, Fewer Babies? Housing Costs and Fertility Decline". Institute for Family Studies. Retrieved 2022-07-16.
- ^ BNN Bloomberg. 29 août 2023. Decades of policy failures spurred Canada's housing crisis: Former deputy PM. En ligne. Page consultée le 2023-09-05
- ^ Radio-Canada. 14 février 2020. « Une grave crise du logement frappe les communautés autochtones ». En ligne. Page consultée le 2023-07-15
- ^ Loi constitutionnelle de 1867, 30 & 31 Victoria, c 3, art 91 (24), <https://canlii.ca/t/dfbw#art91>, consulté le 2023-07-16
- ^ Radio-Canada. « Encore du chemin à parcourir pour résoudre l’enjeu du logement au Nunavik ». Félix Lebel. En ligne. Page consultée le 2023-11-01
- ^ Aménagement linguistique dans le monde. « Les Inuits du Québec ». En ligne. Page consultée le 2023--11-01
- ^ Goyer, Renaud (2020). "Le logement et les inégalités sociales : xénophobie et violence symbolique dans l'expérience du logement de locataires montréalais". Nouvelles Pratiques Sociales (in French). 31 (2): 145–162. doi:10.7202/1076649ar. ISSN 1703-9312.
- ^ "Se soucier, bâtir et prendre soin / Caring about, building and taking care of". L’R des centres de femmes du Québec (in French). Retrieved 2023-12-19.
- ^ Desroches, Marie-Ève (2020). "Créer des logements sociaux pour les femmes : une question de care qui va au-delà du privé". Cahiers de géographie du Québec (in French). 64 (181–182): 53–69. doi:10.7202/1090219ar. ISSN 0007-9766.