Social housing is an investment that pays off, study shows

Maison Shelley was unveiled on Feb. 9, 2024 in Montreal. (Olivia O'Malley / CTV News)

A new study analyzing Quebec Housing Corporation (SHQ) data shows investing in affordable housing is more than worth it.

The study advocates for the government to create more social housing, and highlights that every dollar invested can yield at least a 138 per cent return.

It states that governments can save by investing in social housing, which would prevent homelessness, among other factors.

Additionally, the study shows that some 26,588 jobs could be sustained through the construction and maintenance of such housing projects.

“We know that housing stability costs less than the spiral of homelessness, shelters and all the burdens on the individual, and on the saturation of public service capacity,” the report writes.

The SHQ says its 2024 investments, totalling $1.8 billion, contributed $2.4 billion to Quebec’s GDP and supported 26,588 jobs, 65.4 per cent of which were in residential construction.

Meanwhile, its tax returns to governments totalled $771.5 million.

Social housing is subsidized by the provincial government and fixes rent at 25 per cent of a tenant’s income.

Growing need, low supply

The study was published by the Association des groupes de ressources techniques du Québec (AGRTQ), which helps bring social housing projects to fruition.

“In a tight budgetary context where every public dollar counts, our study sends a clear message: social and community housing is an investment that pays off, both in human and economic terms,” says Tommy Théberge, the AGRTQ’s executive director.

The study notes that the need for low-cost housing has grown by nearly ten per cent in recent years, and the demand for affordable rental units far outweighs what’s available.

According to its data, the proportion of households in urgent need rose from six per cent to 9.4 per cent between 2016 and 2022.

Meanwhile, Montreal’s vacancy rate was around one per cent in 2023.

It bounced up to 2.1 per cent at the end of 2024, but Canada Mortgage and Housing Corporation (CMHC) data showed rents increased as well.

• READ MORE: Montreal’s vacancy rate is going up, but so is rent

The SHQ’s study says the rise in rents was nearly 7.5 per cent in 2023.

“The supply of social and community housing has an impact [...] on the supply of traditional housing for families [...]. It takes the pressure off the market and indirectly [...] controls rents,” the report says.

Subsidized housing in the rental stock is on the decline, according to the study.

In 2018, subsidized housing accounted for about 11.8 per cent of dwellings, excluding single-family homes and condos.

By 2023, it went down to 11.3 per cent – a lower growth rate than the private market.

The study estimates that at this rate, the gap between housing supply and demand could widen by between 770,000 and 1,090,000 homes by 2030.

The SHQ says it helped about 273,000 households find a place to live between 2023 and 2024 and helped build 120,000 housing units.