If we needed more proof of the CAQ’s lack of eagerness to solve the housing crisis, here it is.
The Minister responsible for Housing, France-Élaine Duranceau, waited until the very last day of the parliamentary session to table her Bill 31 on housing, which arrived in the National Assembly last Friday… between good wishes members for the summer season and the tabling of a project to recognize the white admiral as an emblematic insect of Quebec.
Without taking anything away from the insects, it gives an idea of the order of priorities of the CAQ.
Yet housing should be at the very top of the government’s list. Approaching 1er July, the rental market is extremely tight, with a vacancy rate of barely 1.7% – the lowest in 20 years – while the equilibrium rate is at 3%.
In this context, the idea of allowing landlords to block an assignment of lease was received like a ton of bricks by tenants. It must be said that the minister did a poor job of defending this change in the media, suggesting that disgruntled tenants had only to buy a building themselves.
A flagrant lack of sensitivity, even if the minister then defended herself.
But in principle, she is right. It is normal that landlords can choose the tenant who will live under their roof. What is abnormal is that the assignment of leases is now perceived as a tool of last resort to check the rise in rents.
This shows that there is something wrong with the market. And Bill 31 won’t change that much.
It is true that the minister is attacking cavalier evictions, by imposing on landlords who throw their tenant out the payment of reasonable moving expenses in addition to compensation of up to 24 months’ rent, compared to three month right now. This will clean up the market.
PHOTO JACQUES BOISSINOT, CANADIAN PRESS ARCHIVES
The Minister responsible for Housing, France-Élaine Duranceau
However, the CAQ does not change the rules when tenants leave the accommodation of their own free will. Their departure opens the door to a significant rent increase. According to CMHC, the average rent for a two-bedroom apartment that welcomed a new tenant jumped 14.5% in 2022, four times more than the increase (3.5%) for units that kept the same occupant. .
The challenge is there. And the root of the problem is the shortage of housing which is driving up prices. The solution is therefore to build and renovate.
While three-quarters of rental buildings in Quebec are at least 40 years old, it is crucial to encourage landlords to restore apartments if we don’t want to end up with slums.
Quebec could therefore rethink the formula used to adjust the rent when the landlord does major work. Right now, the calculation is that it takes him 26 years to recover his investment, which doesn’t really make you want to pull out his hammer.
To help the poorest, Quebec should also build more affordable housing and improve benefits for households that spend too much of their budget on housing.
But we also need more housing for the middle class, because the crisis is affecting everyone, in all regions of Quebec.
To achieve this, it is high time for Quebec to exercise real leadership, to set construction objectives and to remove the pitfalls that are blocking projects, particularly on the rental side.
For example, why is it that the regulatory burden is five times heavier for the construction of rental housing than for single-family homes, as shown by a CMHC study? It’s absurd !
Why do municipalities prohibit the construction of rental buildings or accessory dwellings on a large part of their territory which is reserved for single-family homes? This goes against the principle of densification!
Strongly a bold action plan to counter the housing crisis, as in Ontario and elsewhere in the country.
Everyone is ready to join forces. On Wednesday, a host of stakeholders who do not usually spawn together, both real estate developers and community groups, joined hands to demand a clear roadmap.
If we want them to play in unison, we need a conductor to give the there.
It’s up to Quebec to play!