Skip to main content

Rental housing construction in Quebec will decrease 40% in 2023: report

Construction of rental housing in Quebec is forecasted to fall by 40 per cent in 2023, according to a report from the provincial homebuilder's association (APCHQ).

It's a significant slowdown compared to 2022, when rental construction fell by 13 per cent.

The reason for this drop in productivity?

"The recent increase in financing costs has significantly undermined the profitability of several rental property projects," the report, released Wednesday, states.

In other words, while inflation and high construction costs have slowed slightly, the effects are still felt in 2023.

The decline in construction comes at a time when demand for rental housing is high -- and is expected only to get higher.

According to Quebec's latest demographic report, the province experienced more population growth in 2022 than in 50 years, up by nearly 150,000 people.

This increase, which followed a major slowdown caused by the COVID-19 pandemic, results from a surge in permanent and temporary immigration.

The APCHQ notes that newcomers often seek rental housing upon their arrival in Quebec, especially non-permanent residents "because of their temporary status."


Like renters, prospective homebuyers will also see fewer options built in 2023.

The number of foundations laid to create single-family homes was down 24 per cent in 2022, and "a decline of the same order" is expected this year.

The association predicts 8,000 new single-family homes will be constructed in 2023, while 9,000 are expected in 2024.

The rate of condo construction is also anticipated to fall, this time by 14 per cent with 6,000 new units on the way.

These figures, alongside other factors, paint a bleak picture of housing accessibility in Quebec, says the APCHQ.

"The aging population, the difficulty of accessing home ownership and, above all, the explosion of migration will stimulate the demand for rental housing like never before," the report reads. Top Stories

Ontario doctors disciplined over Israel-Gaza protests

A number of doctors are facing scrutiny for publicizing their opinions on the Israel-Hamas war. Critics say expressing their political views could impact patient care, while others say that it is being used as an excuse for censorship.

'No concessions' St-Onge says in $100M a year news deal with Google

The Canadian government has reached a deal with Google over the Online News Act that will see the tech giant pay $100 million annually to publishers, and continue to allow access to Canadian news content on its platform. This comes after Google had threatened to block news on its platform when the contentious new rules come into effect next month.

Live updates

Live updates Hamas frees 10 Israeli women and children, 4 Thai nationals

Ten Israeli women and children and four Thai nationals held captive in Gaza were freed by Hamas, and Israel followed with the release of a group of Palestinian prisoners Thursday. It was the latest exchange of hostages for prisoners under a temporary ceasefire in the Gaza war. Two Russian-Israeli women were also freed by Hamas in a separate release.


opinion Don Martin: With Trudeau resignation fever rising, a Conservative nightmare appears

With speculation rising that Prime Minister Justin Trudeau will follow his father's footsteps in the snow to a pre-election resignation, political columnist Don Martin focuses on one Liberal cabinet minister who's emerging as leadership material -- and who stands out as a fresh-faced contrast to the often 'angry and abrasive' leader of the Conservatives.

Stay Connected