A Vision for Smart Growth

The CMM’s PMAD 2026-2046 is more than just an urban planning document; it is a major commitment to redefine how Greater Montreal grows.

 It is structured around three clear strategic orientations: the creation of complete living environments, sustainable mobility, and environmental protection.

Housing and Ridership: Densification and Affordability

Facing the housing crisis, the PMAD establishes unprecedented construction targets.

The CMM projects the addition of approximately 309,900 housing units across its territory by 2046.

 The most structuring aspect lies in the objective that 70% of new housing units be built near major public transit infrastructure.

This approach, known as Transit-Oriented Development (TOD), aims to maximize the ridership of existing and future networks (REM, metro, major bus corridors), thereby reducing dependence on cars.

Furthermore, a flagship measure is the requirement that 20% of new housing units be off-market (social, affordable, cooperative housing).

This effort is crucial for improving access to housing for low- and middle-income households, and for ensuring social diversity in new neighbourhoods.

Economic Impact and Allocated Budgets

The shift towards densification and sustainable mobility represents a colossal investment.

 Although total budgets have not been consolidated under a single PMAD envelope, achieving the objectives will depend on aligning investments in public transit infrastructure (estimated at several tens of billions of dollars over the period for major projects) and financing social housing programs.

• Economic Benefits: Densification around transit hubs is known to stimulate the local economy, increase the efficiency of public services (fewer networks to extend), and make the metropolitan area more competitive by attracting talent and businesses. Cluster development and the protection of agricultural land (which contributes nearly 50% of Quebec's GDP in Greater Montreal) are secondary but essential economic objectives.

• Budgetary Challenges: Municipalities will have to adapt their urban planning schemes and invest in local facilities (schools, parks, services) to accompany the densification. Discussions are underway to implement new financial aid programs and a metropolitan framework for development charges to support municipal efforts.

Mobility and Environment: Towards Sustainability

In terms of transportation, the target is to achieve 50% of all trips made by active or public transit (walking, cycling, public transit).

This ambition will have a direct impact on air quality and the reduction of greenhouse gas (GHG) emissions.

On the environmental front, the PMAD reaffirms its role as a protector of the territory:

• Conservation: 30% of the metropolitan territory must benefit from conservation measures, ensuring the sustainability of natural environments, wetlands, and biodiversity.

• Canopy: The objective of covering 35% of the territory with canopy aims to combat heat islands and improve the quality of life in urban areas.

Social Impact: Quality of Life and Equity

The social impact of the PMAD is intrinsically linked to the quality of complete living environments:

• Proximity to Services: By densifying around hubs, the plan promotes proximity to jobs, businesses, and leisure, reducing time spent in transit and increasing leisure and family time.

• Territorial Equity: By targeting affordable housing and development in areas already served, the plan seeks to mitigate the segregation of uses and urban sprawl, factors that exacerbate socio-economic inequalities.

• Public Health: The emphasis on walking and cycling as primary modes of transport encourages physical activity and contributes positively to the population's health.

In short, the entry into force of the PMAD 2026-2046 marks the beginning of a profound transformation for Greater Montreal.

The challenge now lies in its implementation, which will require the coordination and determination of the CMM’s 82 municipalities to turn this vision of a greener, more affordable, and more dynamic future into reality.

 Detailed Economic Impacts

The Metropolitan Land Use and Development Plan (PMAD) is a major economic lever that acts on three fronts: public and private investment, territorial efficiency, and the competitiveness of Greater Montreal.

1. Stimulating the Construction and Real Estate Industry

The most direct impact is the volume of development it frames:

• Planned Construction Volume: The PMAD projects approximately 309,900 new housing units by 2046. This objective alone generates sustained economic activity throughout the value chain (construction, materials, professional services, etc.).

• Predictable Private Investment: By requiring that 70% of this development be near major public transit, the PMAD creates a predictable framework for developers.

  
  

This predictability is essential for attracting and stabilizing private investments, as it secures demand and land value in the targeted areas.

  This favors the Transit-Oriented Development (TOD) model, which is denser and has a higher economic value per square meter.

• Affordable Housing: The obligation to include 20% of off-market rental housing (affordable, social) requires complex financial arrangements involving public subsidies (federal, provincial, municipal) in addition to investment from the social economy sector.

  
  

This translates into dedicated budgets for social housing, although the exact allocation figures are not consolidated into a single PMAD budget.

2. Allocated Budgets and Strategic Public Investments

The PMAD does not have its own budget, but it steers the spending of government levels and transit agencies over decades.

The required investments are massive:

• Major Public Transit Infrastructure: The plan is intrinsically linked to the development and maintenance of transit infrastructure.

The previous PMAD already mentioned investment needs of around $23 billion for the public transit network over the planning period.

The new PMAD and its 50% sustainable travel target will require continuous injections for:

• The completion of major networks (metro, REM, rapid bus services).

• The development of active transport networks (bike paths, pedestrian walkways) which, while less costly than heavy transit, represent a significant budget for municipalities.

• Efficiency of Public Spending: Compact development and the fight against urban sprawl allow for billions of dollars in savings on infrastructure in the long term.

  Densification reduces the need to extend road, water, sewer, and electricity networks over long distances, resulting in greater public capital efficiency.

3. Impact on Municipal Finances and Development Charges

The application of the PMAD forces municipalities to invest but also offers them new financing tools:

• Densification Support Costs: Densification requires local investments in proximity infrastructure: expansion or construction of schools, parks, libraries, and recreation services.

Municipalities must ensure that their facilities "keep up" with residential development.

• New Financing Mechanisms: To support this effort, experts and the Ordre des urbanistes du Québec (Quebec Order of Urban Planners) advocate for the creation of a metropolitan framework for development charges.

  
  

These charges are sums required from developers to finance municipal infrastructure made necessary by their projects.

A uniform and clear framework at the CMM level helps harmonize practice and ensures that the private sector contributes adequately to the costs of growth.

The implementation of financial aid programs from the CMM or the Government of Quebec to compensate rural municipalities that protect their agricultural land or those making a significant densification effort.

4. Long-Term Competitiveness and Economic Structure

The PMAD aims to strengthen Greater Montreal's position as an economic hub in Eastern Canada:

• Support for Economic Hubs: The plan prioritizes accessibility and support for the dynamism of downtown and major economic activity hubs (the East and West of the agglomeration).

Ensuring better connectivity for people and goods is essential for metropolitan clusters (aerospace, IT, life sciences) which are at the heart of wealth creation.

• Protection of Key Resources: The conservation of agricultural land (30% overall conservation) is a major economic impact.

Metropolitan agriculture is vital, and its protection ensures local supply and the maintenance of the agri-food cluster.

• Resilience and Attractiveness: By improving the quality of life (canopy, complete living environments) and ensuring resilience to climate change, the PMAD makes the region more attractive to skilled labour and businesses, thereby increasing its international competitiveness in the long term.

In summary, the PMAD is an investment engine that shifts spending from road development and sprawl towards quality planning and efficient densification, with the ultimate goal of sustaining Greater Montreal's economic prosperity.