The rental vacancy rate in Quebec is reaching levels not seen in 20 years, according to a new report from the Canada Mortgage and Housing Corporation (CMHC).
Across the province, the vacancy rate fell to 1.3% in 2023, the lowest level since 2003.
Not surprisingly, this shortage is leading to historic increases in housing prices.
From 2022 to 2023, the cost of two-bedroom homes rose 7.7%, a record “since at least the 1990s,” the analysis said.
The rise in rents can be observed everywhere, both in big cities and small towns.
Montreal
In Montreal, the vacancy rate rose from 2% to 1.5% in a year, largely due to demographic growth fueled by immigration.
Net immigration to Montreal has doubled, reaching 150,000 new residents in 2022-23.
“Housing supply is struggling to keep up with strong demand growth supported by record migration,” the 2023 Rental Market Report said.
In addition to population growth, the shortage of rental apartments is also explained by the aging of the population, the more difficult access to property for young people and the good employment prospects for 15 to 24 year olds.
Quebec
The Quebec region is also struggling with a severe shortage, despite a record number of rental apartments coming onto the market in 2023.
The vacancy rate fell to 0.9%, the lowest level in 15 years. Meanwhile, rental costs rose 4.8% last year, something not seen since at least 1990, CMHC notes.