Moving day in Quebec is an exciting and challenging time for many residents in the province. It can be synonymous with a new start and a better future, but in the current context of significant housing shortages and rising prices in the resale and rental markets, anxieties are running high. For those who wish to move from renting to owning, the path remains fraught with obstacles.
With Quebec’s annual moving day approaching, a Royal LePage survey conducted by Maru Public Opinion1 reveals that a significant proportion of Quebec renters (35%, or nearly 750,000 Quebecers)2 considered buying a property instead of renting in preparation for July 1st; a sign that despite financial and market-related obstacles, many aspire to become homeowners.
When asked about the motivating factor behind their decision to rent rather than buy a property this year, 24% of respondents said they decided to wait until home prices decline, while 15% said they have decided to wait until interest rates decline. Another 14% said their attempt(s) to purchase a home was (were) unsuccessful, 12% were still deciding which property type and/or where they would like to buy, 11% said the selection of available properties for sale was insufficient, 10% said they did not have a sufficient down payment, and 8% did not qualify for a sufficient mortgage. Overall, 57% of respondents made their decision based on financial considerations.
“The imbalance between supply and demand that has caused significant price increases in the real estate market in recent years has also affected the rental market, making it even more difficult for renters aspiring to home ownership to save for a down payment,” said Roseline Guèvremont, residential real estate broker, Royal LePage Tendance in Montreal. “For those who are hoping to see prices decline, this is unlikely as demand continues to outstrip supply and there is still a shortfall of 100,000 housing units in Quebec.”
Despite obstacles on the road to home ownership, many renters are still contemplating the idea of becoming homeowners. Among renters who considered buying a property rather than renting this year, 18% say they plan to acquire a property within the next two years.
Of those who said they were not planning to buy a property within the next two years (66%), 32% said the motivating factor behind this decision was that they didn’t believe their income will allow them to buy a property in their desired neighbourhood. Renters also reported that they did not want to assume the maintenance responsibilities of home ownership (17%), and that renting remains more affordable in the short- to medium-term (16%).
Of the respondents who will be renting on July 1st, 2023, a significant proportion (32%) said they had previously owned their primary residence. Of this group, 29% indicated that financial constraints motivated their decision to move from owning to renting their home (16% said they could no longer afford their mortgage since interest rates have increased this year, and 13% moved to another region where property prices are less affordable). Meanwhile, 28% reported the main reason for transitioning to renting was that they had separated or divorced, and 21% noted retirement.
In total, the survey found that 31% of Quebecers (approximately 2.1 million people) will be renters as of July 1st, 2023 (23% have renewed their existing lease, 5% will be moving from one rental property to another, and another 3% will be moving into their very first rental property). Overall, only 5% of Quebecers say they will move from renting to owning on July 1st this year.
Guèvremont recommends that renters looking to enter the resale market consult the right professionals, including a mortgage specialist and a real estate broker, in order to best plan for the purchase of a first home, and be prepared for the lifestyle changes that come with home ownership.
1Maru Public Opinion survey conducted on behalf of Royal LePage was undertaken by the sample and data collection experts at Maru/Blue. 811 randomly selected Canadian adults from Quebec who are Maru Voice Canada online panelists were surveyed from June 12th to June 14th 2023, among which a random selection of 228 respondents who are starting a rental property lease on July 1st 2023.
2Statistics Canada, Population estimates on July 1st (Quebec residents aged 20+), by age and sex
