This text is part of the special Real Estate section
The Girard budget did not present any new measures to develop social housing and stimulate construction starts. According to players in the housing sector, the seriousness of the situation called for a real boost in the face of a crisis which continues to grow every day.
Announced for last fall, then postponed, by the Minister responsible for Housing, France-Élaine Duranceau, the much-hoped-for government action plan risks having to wait a while longer. The budget presented by Minister of Finance Eric Girard for 2024-2025 does not provide any real new solution to redress the situation as quickly as possible, estimates the Popular Action Front for Urban Redevelopment (FRAPRU). While time is running out, François Legault’s cabinet still does not seem to have included the housing crisis in its priorities, he observes.
“There is absolutely nothing in this budget to finance an ambitious program. This is a bit of a signal, in our opinion, that this action plan has been relegated to oblivion,” laments Véronique Laflamme, spokesperson for FRAPRU. “The Quebec government still does not have a program dedicated to social housing that will work in 2024. It’s distressing. This is what is missing today to accelerate the pace. »
Hope disappointed
The Legault government stuck to what had already been announced during the November economic update. Namely the construction, in the next four years, of 8,000 social and affordable housing units following the agreement concluded between Quebec and Ottawa to release funds of 1.8 billion. However, according to FRAPRU, the accumulated delay certainly required further efforts, rather than being content with catching up.
“We are witnessing an erosion of the stock of rental housing that is still affordable. In this context, like many, we hoped that there would finally be a clear objective in the budget for the development of social housing over several years,” reacts Mme The flame. “Unfortunately, we have the impression that we are treading water. Since the CAQ came to power, we have planned little by little, budget after budget, for new social and affordable housing. This is extremely worrying. »
Minister Girard defended himself by explaining that he wanted to provide “direct aid” instead, with a total investment of $483 million to promote access to housing. This amount included in the 2024-2025 budget includes a little more than $200 million to continue the Housing Allowance program, enhanced in 2022 following another agreement with Ottawa. Although it is always welcome, this financial aid nevertheless appears insufficient to counter the effects of the crisis, believes FRAPRU.
“Given the current context, it barely helps absorb the effect of rising rents,” notes Véronique Laflamme. “This is not a measure that makes it possible to fight against the impoverishment of tenant households, especially since the government still does not act upstream to prevent the explosion in rents. There is a lack of structural measures to ensure that we offer another solution to all these households excluded by the private market, of which there are an increasing number. »
The question of construction starts
The budget also does not present any measures to revive construction starts. According to estimates from the Canadian Mortgage and Housing Corporation (CMHC), there could be a shortage of 860,000 homes in Quebec by 2030. To hope to resolve the crisis, the construction of at least 150,000 homes would need to be launched. per year.
Last year, we barely reached the figure of 39,000. “We should triple the rate of construction starts,” says Paul Cardinal, director of the economic department of the Association of Construction and Housing Professionals of the Quebec (APCHQ), which regrets that nothing is proposed to stimulate the construction of private housing, such as maintaining the Quebec sales tax (QST) on new rental homes.
“The minister very quickly closed the door on the abolition of the QST. However, it would help make new buildings profitable by allowing developers to reduce their capital outlay,” maintains Mr. Cardinal. “There are projects currently that are not breaking ground because profitability is not possible. We are not saying that this removal would solve all the problems. But it would allow some of these projects to move forward, and it would certainly provide a helping hand. »
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