Housing crisis deepens as industry report calls for urgent action

Tashi Farmilo

A new report titled Consultations prébudgétaires 2025-2026 warns that the housing crisis in Quebec is reaching a breaking point, with the Outaouais among the most severely affected. Released by four major industry groups—the Association de la construction du Québec (ACQ), the Association des professionnels de la construction et de l’habitation du Québec (APCHQ), the Institut de développement urbain du Québec (IDU), and the Corporation des propriétaires immobiliers du Québec (CORPIQ)—the report outlines urgent measures needed to address the growing gap between housing supply and demand.

For Gatineau residents, the report’s findings confirm what many have already experienced firsthand. Rents are rising, availability is shrinking, and homeownership is slipping further out of reach.

One of the key concerns raised in the report is the competitive disadvantage faced by Quebec developers compared to those in Ontario. While the Ontario government has removed its portion of the Harmonized Sales Tax (HST) on new rental developments, Quebec has yet to introduce a similar measure, the report states. According to Melançon, "This discrepancy discourages investment in Gatineau and could push developers to prioritize Ottawa instead. Without adjustments to Quebec’s tax policies, the shortage of rental housing will only get worse."

The report also emphasizes the need for greater investment in infrastructure to support new housing developments. Rapid population growth in Gatineau has put significant pressure on municipal services, particularly water and sewage systems. "Without sufficient infrastructure, large-scale housing projects become increasingly difficult to complete," said Daniel Champagne, municipal councillor for the Versant district and former interim mayor of Gatineau. “But we cannot tackle this alone. The Quebec and federal governments must contribute to the solution.” Champagne firmly remarked.

The ageing rental stock in the region is another major challenge. More than 70 percent of rental buildings in Outaouais were built before 1980, and many landlords say they are struggling to afford necessary renovations due to Quebec’s rent control policies. The report proposes tax incentives to help property owners modernize their units and keep more housing on the market.

"We need to find a balance between protecting tenants and enabling landlords to maintain and improve the housing stock, " Champagne explained.

The report focuses on rental housing, it also highlights the growing difficulty of homeownership in Quebec, which in turn increases pressure on the rental market. "Affordability has reached historic lows, and many young families in Gatineau are unable to buy homes, keeping them in rental units longer than expected," Melançon noted. The report recommends eliminating property transfer taxes for first-time buyers and introducing a government-backed investment fund to assist with down payments.

"Gatineau has implemented measures to encourage affordable and social housing development," Champagne said, highlighting urban planning policies that require a portion of new projects to include affordable housing. "For example, through the downtown urban planning program, we have created incentives where part of the fees from new construction projects goes directly toward municipal investments in affordable housing, community centers, and other public infrastructure." He also noted new levies on developments to support housing initiatives. "We are implementing development charges specifically to create social and affordable housing. This means that for every major new development, part of the revenue is reinvested to support housing initiatives for those most in need." While tax disadvantages and regulatory hurdles may deter some developers, these initiatives aim to make housing more accessible.

While Quebec has introduced some measures to address the crisis, the report argues that they fall short of what is needed to make a meaningful impact, particularly in high-pressure areas like Outaouais. "Housing is not a luxury but a fundamental necessity," Melançon concludes. "Without immediate intervention, affordability in the Outaouais will continue to deteriorate."