How to encourage real estate developers to undertake the construction of new housing units in Quebec? One expert opined that the “control factor” is slowing housing starts.
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Many cities are posting vacancy rates below 1% due to the housing crisis.
Accelerating the construction of housing units will slow down the problem of housing shortage, if conditions are met.
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In addition to labor shortages, municipal requirements in terms of building rental projects are hurting developers, said economist Francis Gosselin.
“One of the things that municipalities and cities have, which is a whole regulatory thing, is the processing time for permit applications is worse. In big cities, we are seeing an increase in treatment duration,” he said in an interview on LCN’s airwaves.
“[Pour] A developer [ou] Every extra day, every extra week it takes for a promoter to buy land ready for construction, to process the request and give the green light to the project, these are costs incurred in terms of financing, holding. Ultimately, this slows down the start of construction.
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Subsidies for developers, property tax credits and regulatory relief for social housing construction: All these solutions are good for encouraging housing construction.
Despite the efforts of the Quebec government, the housing crisis represents a brake on Montreal’s economic prosperity in the short to medium term.
“If people don’t have somewhere to live, they can’t work, they can’t be productive. […] Tomorrow, we welcome 75,000 immigrants, we have to put them somewhere, we have to house them, we have to provide them with housing,” Mr. Gosselin said.
“Currently, the labor problem is limiting the country’s growth.”
*Watch the interview with Frances Gosselin in the video above*
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