The housing crisis: a problem of availability and affordability

Recent data from the Canada Mortgage and Housing Corporation (CMHC) shows that the vacancy rate for homes on the Island of Montreal fluctuates continuously and varies by territory.

The market has seen very high increases in certain areas.

Many new homes are vacant, but their rents are too high for the majority of the population.

The socio-economic impact of vacant properties

• On the housing shortage: The reintegration of vacant homes could play a major role in the housing crisis.

  
  

  Some homes are deliberately left abandoned by owners who prefer to renovate them to then considerably increase rents, which worsens the shortage of affordable housing.

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• On the value of neighboring properties: A vacant lot or building in a residential neighborhood can harm the value of neighboring properties, as it is perceived as a devalued or unfinished space.

  
  

  Conversely, the rehabilitation of these buildings increases the value of real estate in the sector.

  
  

  The City of Montreal seeks to encourage rehabilitation to improve the living environment and land value.

The City is therefore tightening the screw on owners who leave their buildings abandoned.

"We are talking about long-term unoccupied buildings, not [buildings] under construction or seasonally unused," specifies Robert Beaudry, head of urban planning on the executive committee.

Fines are planned for repeat offenders: between $500 and $2,000 for a first offense, and up to $10,000 for a repeat offense. "We will proceed gradually," assured Mr. Beaudry.

The City of Montreal wants to "accentuate the responsibility of owners for building occupancy and maintenance," specifies the municipal bylaw adopted last fall, which will also make it possible to "harmonize the census of vacant buildings" on the territory of the metropolis.

The adoption of this bylaw will make it possible to better monitor vacant buildings in order to intervene, particularly on heritage issues.

According to available information, owners invoke several reasons for leaving properties vacant:

• Renovations: Some homes are left abandoned for major renovation projects.

  
  

  Once the work is completed, owners can set new, higher rents, corresponding to the renovated home's market value.

  
  

• Property sale: Owners who wish to sell an income property may leave it vacant to make it more attractive to potential buyers.

  
  

  This allows them to avoid the constraints and legal complexities associated with repossessing a rented home, and to optimize the selling price.

  
  

• Investment strategy: Some owners may leave homes empty to attract a diverse clientele of buyers and to be able to set more competitive rents that reflect the current market value after a renovation.

There is also significant potential for the conversion of non-residential properties into housing in Montreal, and the City has already put in place measures to encourage this practice.

• Commercial and industrial buildings: Ambitious transformation projects are underway or under study, such as the redevelopment of the former Molson brewery site and other disused factories.

  
  

  The goal is to create living neighborhoods where old industrial and commercial buildings become homes.

  
  

• Zoning change: The conversion of these spaces often requires zoning adjustments. The City is facilitating this process to respond to the evolution of the real estate market and the needs of the population.

  
  

• Conversion programs: The City of Montreal has launched a subsidy program to encourage and support the renovation and conversion of vacant commercial premises into residential homes.

  
  

  This program aims to encourage owners to transform their unused spaces.

  
  

  Disused industrial buildings: Ambitious projects aim to transform former industrial sites into living neighborhoods. For example, the former Molson brewery site is being redeveloped, and it is planned to build many homes there.

  
  

  Likewise, projects are under study to convert buildings such as the former Canada Malting factory or the La Patrie building into housing, some of which are intended for social purposes.

  
  

  Obstacles and solutions: The conversion of these buildings, whether commercial or industrial, often requires a zoning change.

  
  

  The zoning modification procedure is governed by law and can take several months. The City is facilitating this process to respond to the evolution of the real estate market and the needs of the population.

  
  

  It is adapting its urban planning regulations to respond to the evolution of the built environment and the needs of the population, thus paving the way for this type of project.

Why are these properties abandoned?

If conversion is a promising solution, it is important to understand why these properties are vacant in the first place. The reasons are varied:

• Costs and constraints: Conversion projects are complex and costly, requiring significant investment for structural adaptation and compliance with construction standards.

• Real estate speculation: Some owners deliberately leave properties vacant, whether residential or not, in anticipation of an increase in their market value. This is a strategy that allows them to maximize profits when reselling.

• Future projects: Owners may keep a building empty in anticipation of future large-scale development or renovation projects. This is often the case for industrial sites or large buildings that require complex planning over several years.

The reintegration of these vacant properties is a win-win strategy.

It not only increases the supply of housing, but also revitalizes entire neighborhoods, increases the value of neighboring properties, and reduces urban heat islands.

By making these spaces accessible and affordable, Montreal can transform industrial wastelands into prosperous and dynamic communities, thus offering a concrete solution to the housing crisis.