The Housing Crisis: A Long Descent into Hell
The current crisis isn’t a coincidence, nor is it the first in the country's history, but specific factors do make it unique.
THE ORIGINAL ARTICLE CAME OUT ON PIVOT.QUEBEC IN FRENCH. WE HAVE TRANSLATED THIS TO GIVE PEOPLE A BETTER EXPERIENCE THAN SIMPLY USING THE BROWSER’S TRANSLATORS.
In this article, the first of our series on the housing crisis, we will lay out some fundamental elements to define this phenomenon. When did the crisis begin? What are its main causes? What responsibilities lie with different levels of government? These issues will be explored more thoroughly in subsequent articles.
For several years now, housing in Quebec and most major Canadian cities has been discussed in terms of a "crisis." Some deny its existence, such as the Coalition Avenir Québec (CAQ) (the ruling government of the province) did until recently.
The numbers speak for themselves.
As of July 1, 2024, according to data compiled by the Société d’habitation du Québec (SHQ), 1,667 tenant households were without housing or actively searching, assisted by relocation services. On the same date, 9,519 tenant households in Quebec sought help from housing offices, fearing they would not find housing that year. Similar figures are expected by July 1, 2025.
However, this phenomenon didn't occur overnight. It results from decades of political, economic, and social stagnation.
What exactly is this crisis?
"There is no crisis. The market is operating exactly as it was designed—to benefit investors and profit-making," says Ricardo Tranjan, political economist and senior researcher at the Canadian Centre for Policy Alternatives (CCPA), and author of the book "The Tenant Class."
"What we've observed for at least 70 years is that the federal government and several provinces prioritize homeownership, seen as a path to financial security and housing stability," Tranjan said. "If you don't buy a home, you're left navigating the rental market."
"We acknowledge that the current market won't meet the needs of the poorest, necessitating some form of social housing. But investments in social housing fluctuate over time. Sometimes they increase slightly, sometimes decrease, leaving us consistently far behind," Tranjan said.
Francis Cortellino, housing market analyst at the Canada Mortgage and Housing Corporation (CMHC), noted that the pandemic exacerbated the crisis, highlighting that property prices in Quebec rose by an average of 45% in two years—an increase typically spread over ten years under normal conditions.
He also pointed out that the few thousand new housing units built recently in the province are 95% occupied but remain expensive and inaccessible to many.
"Even though the newest housing is expensive, it’s still occupied… Adding supply is better than not doing so, but it must include diverse options because some households will always lack sufficient income to access homeownership or even suitable rental housing. Affordable or off-market options are necessary to accommodate these households," Cortellino said.
Space requirements have also evolved considerably in recent decades; people desire larger homes, even as couples, said Jean-Philippe Meloche, professor at Université de Montréal's School of Urban Planning and Landscape Architecture. "In 1966, Plateau Mont-Royal had about 170,000 residents, compared to around 100,000 today," he said.
"One might think things are bad on the Plateau since prices have never been higher. Yet it's simply demographic changes. In the 1960s, modest families occupied these homes with several people per unit, whereas today they house mostly couples," he said.
Housing Over Time
Quebec and Canada's housing policy history is marked by governmental interventions responding to housing needs, notably social housing and affordability. Here’s a brief overview:
Before 1940: Private Housing and No Government Intervention
Housing was largely a private matter. The government did not intervene in the rental market, and housing supply was managed by private developers. Housing conditions were often precarious, particularly for the working classes in major cities like Montreal and Quebec.
1940-1960: Initial Interventions and Rent Control
During WWII, the federal government implemented rent controls to fight inflation and speculation. In 1946, the Canada Mortgage and Housing Corporation was established initially to help veterans and subsequently the broader population. However, Quebec lagged behind other provinces in social housing.
1960-1980: Quiet Revolution and Social Housing Development
The Quebec government began actively engaging in housing during the Quiet Revolution. The Société d'habitation du Québec was created in 1967 to coordinate housing policy. Between 1974 and 1986, SHQ directly constructed thousands of low-income housing units (HLM).
1980-1990: Reduced Federal Commitment and Increased Quebec Support
The federal government progressively cut social housing investments in the 1980s. Quebec responded by creating alternatives like the AccèsLogis program in 1997, funding housing cooperatives and non-profit housing.
2000-2020: Housing Crisis and Accessibility Policies
Facing rising housing costs and regional crises, Quebec strengthened policies:
-Enhanced access program for quicker social housing construction.
-Introduced Rent Supplement Program, capping rent at 25% of income for some households.
-Increased funding for HLMs and housing cooperatives.
2020-Present: Housing Shortage and New Measures
-The affordable housing shortage and rising rents compelled governments to adopt new strategies:
-The National Housing Strategy (2017-2027), a federal commitment of over $115 billion for building and renovating affordable housing.
-Quebec's Bill 31 (2024), modifying housing provisions and criticized as regressive due to ending unlimited lease transfers.
-Bill 65 (June 2024) limiting eviction rights for elderly tenants.
Sources: FRAPRU, CMHC, OMHM, SHQ
Rethinking Housing
"The issue is that housing is viewed purely financially, rather than as a fundamental human right," said Marie-Josée Houle, who was appointed Canada's first Federal Housing Advocate in 2022, tasked with addressing inadequate housing and homelessness.
"Having a home is fundamental to functioning in society," she said. For Houle, financialization is the core problem. "As long as housing is treated solely as a financial investment aimed at profit, the crisis won't be resolved," she said.
She was unequivocal about governmental responsibilities: "All government levels must address this issue. It’s not just a single government's responsibility."
The gap between housing supply and demand remains vast in Canada. Experts recommend massive, rapid housing production, intelligent densification, and federal-provincial-municipal cooperation emphasizing transparency and accountability.
This investigation was made possible thanks to a grant from the Association des journalistes indépendants du Québec (AJIQ).