Quebec rent crisis is squeezing client budgets and delaying homeownership
The Desjardins report notes that declining homeownership rates across many areas of Canada in recent years are partly a consequence of this dynamic, as high borrowing costs and elevated home prices have already stretched affordability, and high rents are now removing the savings buffer that would allow renters to make the leap into ownership.
A client spending above the widely used 30% gross income threshold on housing — the standard benchmark for affordability — has significantly less capacity to contribute to a Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP). According to the Desjardins report, a Quebec household would need an annual income of approximately $49,300 to afford the average rent within that 30% threshold, yet the median individual income in the province sits at around $40,600.
Singles and lower-income clients face the steepest climb
The affordability gap is sharpest for single-person households. Singles account for 52% of all renter households in Quebec, according to the report, despite representing just 35% of the total provincial population. For these clients, there is no second income to share housing costs, making rent a proportionally heavier burden.
The Desjardins data also show that average rent is only affordable — within the 30% guideline — for individuals in the top three income quintiles. Those in the bottom two quintiles face a structural shortfall, with little prospect of relief in the near term given that construction costs are projected to rise a further 7% in 2026.
