In a significant survey conducted by Léger for the Société d'habitation du Québec (SHQ) and the Quebec Professional Association of Real Estate Brokers (QPAREB), insights into Quebec's residential real estate market reveal unchanged home-buying intentions amidst the backdrop of rising prices, inflation, and high interest rates. The survey, which involved 4,162 participants during the fall of 2023, compared intentions to buy or sell homes over the next five years, shedding light on the evolving landscape of Quebec's residential real estate and the impact of post-pandemic economic conditions.
Remarkably, the desire to purchase homes remains strong among Quebec households, with 22% of respondents in 2023 indicating their intention to buy within the next five years, a slight increase from 21% in 2022. This resilience is particularly notable among younger demographics, where 49% of 18–34-year-olds express a desire to buy, highlighting the enduring appeal of homeownership despite financial challenges. This group notably includes a significant proportion of first-time buyers, though a third acknowledge the current financial barriers to achieving this milestone.
The survey underscores the financial strain on potential homeowners, exacerbated by high interest rates, with only 72% of Quebecers in 2023 confidently meeting their financial obligations—a decline from previous years. This financial pressure is contributing to a cautious approach toward purchasing, particularly among young adults, many of whom are delaying their buying plans due to affordability concerns.
Interest in moving to different regions of Quebec has somewhat waned from the pandemic peak, reflecting the dual challenges of increased prices and limited property availability. However, 11% of Quebecers still aspire to relocate within the province, indicating a degree of continued interregional mobility.
Single-family homes remain the preferred choice for most prospective buyers, with 81% of intentions leaning in this direction, albeit with slight variations across different demographics. Condominium interest remains stable at 14%, despite the deterrent of a 20% increase in condo fees over the past two years.
The average expected price for a principal residence acquisition has surged to $440,000, a 34% increase from 2020, illustrating the public's acute awareness of and resignation to the high property prices in Quebec. Charles Brant of QPAREB notes the latent demand remains largely unaffected, although transitioning these intentions into actual purchases presents significant challenges, especially for first-time buyers.
With high property prices and interest rates sidelining many potential buyers, the survey also highlights the renting reality for many Quebecers. Seventy-eight percent of tenant respondents cite practical considerations for their housing choices, with a significant number of young adults viewing renting as a temporary step towards homeownership.
Awareness of the First-Time Home Buyer Savings Account (FHSA) has increased among Quebecers, indicating a growing interest in leveraging financial tools to facilitate the transition to homeownership.
The survey reveals that 14% of homeowners intend to sell within the next five years, with a notable inclination among younger homeowners to upgrade to larger properties. This intention, however, may not sufficiently meet the demand, particularly for single-family homes, suggesting potential supply challenges ahead.
The 2023 survey by SHQ and QPAREB paints a detailed picture of Quebec's residential real estate market, marked by enduring interest in homeownership counterbalanced by financial constraints and changing market dynamics. As Quebecers navigate these complexities, the insights from this survey offer crucial understanding for stakeholders across the real estate spectrum, emphasizing the need for adaptive strategies in both purchasing and policy-making to support Quebec's future homeowners.