An observation which was made by the CMHC during the last few years is that the construction of new residences for elderly people in Quebec and more in particular in the region of Montreal has developed a lot and this vigorous stride of the building contractors has pushed vacancy rates on the market upward. Presently, there is enough supply on the market of new construction to satisfy demand for about one year and a half.
More than 7 000 new apartments will arrive on the market in the short term. One now counts more than 4 200 apartments with the new residences in operation, and no less than 3 200 apartments will be part of the construction of new residences. The stocks continue to grow.
In 2009, one expects a vacancy rate of 8 % in this component of the market. And it has even reached almost 30 % in the western sector of the island [of Montreal].
One also notices that whilst our population is growing older this also modifies our housing habits and [growing] demand allows to offer more and more services and luxury comfort to elderly people. During the last few years, supply has diversified a lot, and in this context, one now offers a way of life and an environment of quality, more and more luxuries and services of high quality, and one meets on the market an offer ever more situated in the higher end of the quality scale. One also notices that the new residences are more adapted to an elderly clientele.
There is however a challenge society has got to face which is the affordability of the apartments of these new residences for elderly people. More affordable outside the island of Montreal, yes, but the fact remains that these apartments are often expensive. Average rent (abstraction being made of apartment sizes in 2007) of apartments for elderly people amounted to 1 290 $ per month.