Montreal in Canada is one of the most diverse cities on the planet. It has a pre dominantly French speaking population outside France and the city is economically, financially and culturally very sound. It is a major transport and cargo hub as it has an international port. Even in terms of real estate the city is doing well than its Canadian counterparts. In 2000, the vacancy rate was just 0.7% as compared to other cities such as 0.9% in Toronto and 0.7% in Ottawa.
The average monthly rent for a two bedroom apartment was $500 as compared to $850 in Vancouver and $910 in Toronto. Further analysis show that one in ten residents has to spend more than 80% of their income for housing costs. Over the last few years, the entry of expats and other immigrants has led to the increase in multi family housing.
From the year 2001 there has been a rise in the single detached houses to 4 % and for the urban multiple homes the jump was 39.4%. This was because of the immigration of more than 10,000 new households which get introduced in the market each year. Since the visitors do not have enough finances to own their own house in Montreal on their arrival, they settle for rented houses. Many of these people will start living with people who share their culture so that they can mingle more freely with each other.
There has been a sudden increase in the construction of new single and multi family properties and this is because of the low costs of labor and the inventory market. There has been a construction boom. The Canada Mortgage and Housing Corporation claims that the market will not get hotter but it will continue to thrive despite the market crash in the US real estate agency.
Here is a video from O’Neill Real estate explaining why a US Style crash won’t happen in Canada :