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Montréal Metropolitan Region --- Rental construction slowed in 2006

Montréal Metropolitan Region --- Rental construction slowed in 2006

In 2006, 5,339 rental units were built in the Montréal Metropolitan Region. Almost half of these were for elderly people. These figures were provided by the CMHC.

Rental unit starts were higher in 2004 and 2005, for 6,443 and 6,687 units respectively.

The resale market is also going strong in the Montréal region. A record was reached in 2006, with 38, 000 transactions. These are listed on the S.I.A/MLS network. In 2005, there were 37,951 transactions and 37,410 in 2004.

''A decrease in the interest rates forecast in the spring should improve performance,” says Paul Cardinal, CMHC Market Analyst.

There was a decrease in sales of plexes (2 to 5 units) in 2006 with 4,800 transactions compared to 5, 238 in 2005, or a decrease of 8 %.

The growth in the price of plexes calmed slightly in 2006: the average price of a transaction was $312, 000 creating an increase of 8% over 2005. It should be remembered that in 2003, there was a record increase of 23% in the average price of a plex.

This proves that the plex market is always interesting, especially in the Montréal region.

Finally, CMHC forecast for 2007 for the rental unit market in the Greater Montréal Region can be summarized as: the vacancy rate should reach 3.2%; rents should increase by 2.5% (not taking into account tax increases), and rental startups will continue to decrease (- 6 %) to around 5,000 units.

About the author

Berthold Lévesque

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