Results of a major survey on Quebec’s residential real estate market were recently released by the Societe d’habitation du Quebec (SHQ) and the Quebec Professional Association of Real Estate Brokers (QPAREB).

Conducted by Léger in fall of 2023, the survey of 4,162 respondents outlines home-buying and -selling intentions over the next five years and what this means for the province’s rental market. It centred on effects and behavioural changes from post-pandemic impacts, like high interest rates, on consumer choices.

Strong home-buying intentions

Despite soaring property prices and interest rates, Quebec households remain committed to their intentions to purchase homes.

The survey highlights that 20 per cent of respondents bought a property within the past five years, with intentions to buy holding steady at 22 per cent in 2023, slightly up from 21 per cent the year prior. Notably, younger demographics, particularly those aged 18 to 34, show strong interest in homeownership despite financial constraints.

Rising property prices

The average expected price for a principal residence over the coming years is $440,000, marking a significant 34 per cent increase from 2020.

This surge in prices, coupled with high interest rates, poses challenges for prospective buyers, with only 72 per cent of Quebecers able to meet their financial obligations easily in 2023, down from 86 per cent in 2021.

Preference for single-family homes

Single-family homes remain the top choice for prospective buyers, accounting for 81 per cent of home-buying intentions.

Condominiums, while still popular, face challenges due to rising fees, which increased by 20 per cent over the past two years.

Limited selling intentions

Despite some increase in selling intentions, particularly among young homeowners looking to upgrade, only 14 per cent of Quebec homeowners plan to sell their properties over the next five years.

This limited supply could contribute to a potential deficit in the housing market.

Rental market under pressure

The rental market experiences upward pressure on rents due to limited property supply.

Tenants face challenges, with average rent prices steadily increasing from $862 in 2021 to $963 in 2023, with the Montreal CMA recording the highest rent prices at $1,045.

Efforts to increase rental housing

Recognizing the challenges faced by tenants, the SHQ emphasizes efforts to increase the supply of rental housing.

However, low vacancy rates in many regions highlight the need for early housing searches and financial assistance for tenants.

Get more information on the survey results and implications for the province.