Study maps regions where affordability has deteriorated fastest
Quebec families face mounting challenges in purchasing single-family homes as the gap between property prices and household incomes continues to widen, according to a study released Thursday by the Quebec Professional Association of Real Estate Brokers (QPAREB).
The analysis shows that while median single-family home prices have more than doubled in most regions since 2015, after-tax, inflation-adjusted household incomes have increased by only 15% to 25% over the same period.
Down payments present growing barrier
The minimum required down payment has more than doubled across nearly every Quebec region over the past decade, according to the study. Provincewide, the minimum down payment has increased by approximately $15,000 since 2015, now standing at nearly $25,000.
The situation has become particularly acute as nearly half of all single-family home transactions now exceed the $500,000 threshold, compared with approximately 5% in 2015. Federal mortgage rules require higher down payments for properties above this price point.
Regional disparities have widened significantly. Montreal requires the highest minimum down payment at $54,000, followed by Laval at $35,100 and Montérégie at $32,000. In contrast, outlying regions such as Gaspésie—Îles-de-la-Madeleine require $12,000.
Savings timeline extends to years
The time required to accumulate sufficient funds for a down payment has increased substantially. In 2015, Quebec families generally needed approximately three years to save for a down payment. That timeline has now extended to five years provincewide.
“A family’s financial ability to become a homeowner in their region depends largely on their disposable income, which must be sufficient to cover mortgage payments,” said Hélène Bégin, QPAREB senior economist. “Even in areas where median incomes are lower, purchasing a property may still be possible if monthly payments are also lower.”
The Island of Montreal faces the most severe challenges, with the savings period now exceeding 10 years in 2025, up from 5.4 years in 2015.
Monthly payments triple in decade
Monthly mortgage payments have increased two to three times across all Quebec regions over the past 10 years. Outlying regions maintain monthly payments at $1,500 or less, while the Island of Montreal requires approximately $3,800.
The share of after-tax family income devoted to monthly mortgage payments has more than doubled at the provincial level, rising from 15% to 32%. Montreal families now allocate nearly 48% of their income to mortgage payments, while five outlying regions maintain a mortgage burden of 20% or less.
Outlook remains challenging
“Current conditions leave little hope for a rapid improvement in affordability,” said Charles Brant, QPAREB market analysis director. “The rise in single-family home prices continues to outpace after-tax income growth.”
The association identifies three factors maintaining price pressure: strong demand for single-family homes, weak new home construction, and seniors delaying the sale of family properties.
