The CAQ government seriously needs to start paying attention. He multiplies insensitive statements about housing construction and thereby risks damaging his image.
Who really thinks that tenants stay tenants in Quebec just because they don’t want to invest?
Who really believes that rising house prices are only related to rising wages?
However, this is what the Legault government claims.
When François Legault says that the rise in house prices is “a consequence of rising average wages”, he is wrong.
He obviously wasn’t looking at the numbers.
Between 2010 and 2020, house prices rose twice as fast as wages.
And the increases have intensified in recent years.
In 2021, property prices increased by 24%. In 2022, it was 14%, according to the Quebec Real Estate Association.
According to the Institut de la statistique du Québec, the average hourly wage increased by 2.2% in 2021. In 2022 it was 5.8%.
Tenants were not immune to the rise either.
Last year, rents in Quebec rose an average of 13.7%, according to announcements on Kijiji. In some cities we are talking about a 40% increase. According to the Canada Mortgage and Housing Corporation, it is likely to increase further by 30% through 2025.
One in four tenants spends more than 30% of their income on housing. For every tenth it is more than 50%. People who have to cut corners somewhere else and have no leeway.
According to Le Journal, in 2022, the average Quebecer has not seen a 30% salary increase like MPs or 15% like Quebec’s top 30 CEOs.
These CEOs make an average of $9 million, or 153 times the average salary for Quebec workers.
The reasons
François Legault is right when he says that house prices are rising because of a lack of supply.
The increase in population also plays a major role.
It should not be overlooked that interest rates have been at a low point since the 2008 financial crisis.
Once the government understands the root of the problem, it doesn’t seem to come up with solutions very quickly.
It’s a big social problem
And it becomes a political vulnerability for François Legault. Especially since the housing shortage affects all of Quebec. Parents worry about their children. Industries cannot recruit workers in the regions…
The CAQ leader has long been in alignment with his populace on many issues, such as nationalism, secularism, managing the pandemic…
But he has to be more sensitive to housing issues and act quickly. Politicians can get involved on specific issues… talk to Philippe Couillard, who’s always trying to get groceries for $75.
