Real Estate

What is the reason that rent is so cheap in montreal but super expensive in toronto?

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  • Aug 21st, 2016 12:50 pm
[OP]
Penalty Box
Mar 8, 2016
325 posts
48 upvotes

What is the reason that rent is so cheap in montreal but super expensive in toronto?

Does anyone know the reasoning behind this? Everthing in montreal is cheaper, insurance my cousin who is there pays like $50 per month, here in ontario its like $300 per month if ur lucky
rent in downtown montreal private apartmnet own washroom/own kitchen is like $500 here in toronto u'd get that for $1300

what gives?


bjl
42 replies
Deal Addict
Feb 21, 2004
1410 posts
189 upvotes
Montreal
Insurance is cheaper on cars because of the no-fault provision in Quebec (you can't sue other party in car accident)

Apartment rental is mostly demand/offer, there just isn't enough immigration to sustain the high demand in Montreal compared to Toronto. The Condo construction boom also started later in Montreal than Toronto. On new buildings, you can set whatever rent you want for the first 5 years in Quebec. Everything else is severely controlled and the annual rental increase allowed by the Board is less than inflation (ridiculous but discussion for another day)

By the way, that 500$ downtown apartment is a myth, you cannot get anything for that price in the core, prices will be more in the 1700-2500 range for a standard 1 bedroom in a no frills building or older building.
Deal Expert
Feb 29, 2008
24062 posts
2964 upvotes
Montreal
I don't buy the immigration argument:

http://www.statcan.gc.ca/tables-tableau ... 3b-eng.htm

Yes Ontario has more immigration, but proportional to it's population, almost double that of Quebec, it's about the same ratio. If anything Ontario has three times the emigration of quebec, or a 50% higher rate.


There are other factors at play, not the least of which is that real estate and housing in general are cheaper in Montreal. Supply vs demand, local economic factors, rent control legislation and other factors come in to play.
Member
May 28, 2012
227 posts
156 upvotes
ONT
I think one of the main reasons GTA land/housing/rent costs are very expensive compared to many other Canadian cities is that it is situated on Lake Ontario. When a city can only expand in 180 degrees compared to a 360 degree city (Montreal), the available usable space will be more expensive. Vancouver is a similar situation. Yes, immigration, industry etc will influence costs but location has a large impact.
Deal Expert
Feb 29, 2008
24062 posts
2964 upvotes
Montreal
mrct1944 wrote: I think one of the main reasons GTA land/housing/rent costs are very expensive compared to many other Canadian cities is that it is situated on Lake Ontario. When a city can only expand in 180 degrees compared to a 360 degree city (Montreal), the available usable space will be more expensive. Vancouver is a similar situation. Yes, immigration, industry etc will influence costs but location has a large impact.
Geographical constraints, you say?

Image
Deal Fanatic
User avatar
Nov 6, 2010
8753 posts
1093 upvotes
Montreal, QC
Auto insurance has already been covered so I won't go into that.

Rental prices, there's 2 notable elements to it:
- very strict rental boards
- large supply of student renters proportionally (one of the highest per capita student populations in North America)

Also, historically, Montreal has had a history of rentals, even long term ones, which is why you'll see notably more 3-4 bedroom rentals. There's an element of supply & demand, but population of the city has been growing fairly steadily alongside most other Canadian cities so I don't think that alone would cause prices to be significantly lower. In this particular case I think it's mostly a combination of La Regie and a fairly large rental culture.
Member
May 28, 2012
227 posts
156 upvotes
ONT
mr_raider wrote:
mrct1944 wrote: I think one of the main reasons GTA land/housing/rent costs are very expensive compared to many other Canadian cities is that it is situated on Lake Ontario. When a city can only expand in 180 degrees compared to a 360 degree city (Montreal), the available usable space will be more expensive. Vancouver is a similar situation. Yes, immigration, industry etc will influence costs but location has a large impact.
Geographical constraints, you say?

Image
19 bridges and 1 tunnel don't seem to constrain Montreal. Maybe not too easy to access at 8.00AM and 5.00PM but at least there is 360 degree access.
Deal Fanatic
User avatar
Nov 6, 2010
8753 posts
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Montreal, QC
mrct1944 wrote: 19 bridges and 1 tunnel don't seem to constrain Montreal. Maybe not too easy to access at 8.00AM and 5.00PM but at least there is 360 degree access.
Yes but off the island is no longer the city of Montreal. Actually, that brings us to an interesting point. Aside from a few suburbs, most of the off-island cities around Montreal are fairly cheap (relatively speaking). However, GTA suburbs aren't are just as expensive as Toronto due to no actual land barrier separating it from Toronto. Also, most GTA suburbs are in and of itself fairly decently sized cities where aside from maybe a handful, most suburbs of Montreal are small towns still. The density really is still kept on the island.
Banned
Aug 3, 2005
1235 posts
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Why do apples and oranges look and taste different?
Deal Expert
Feb 29, 2008
24062 posts
2964 upvotes
Montreal
mrct1944 wrote:
mr_raider wrote:
mrct1944 wrote: I think one of the main reasons GTA land/housing/rent costs are very expensive compared to many other Canadian cities is that it is situated on Lake Ontario. When a city can only expand in 180 degrees compared to a 360 degree city (Montreal), the available usable space will be more expensive. Vancouver is a similar situation. Yes, immigration, industry etc will influence costs but location has a large impact.
Geographical constraints, you say?

Image
19 bridges and 1 tunnel don't seem to constrain Montreal. Maybe not too easy to access at 8.00AM and 5.00PM but at least there is 360 degree access.
Indeed. But that is reflected in RE values. I probably saved close to 750k by buying off island.

There are geographic constraints which are no worse than Vancouver or Toronto. Plus the roadway and transit system is less efficient, which makes the penalty for living far away even more severe in terms of commute. Finally, congestion on the island itself is bad enough that preclude people living at one end from working at the other.
Deal Addict
May 12, 2014
2325 posts
1882 upvotes
Montreal
ccyk wrote: cant understand 1 word in french. cant live there even if rent is free.
It's better to speak French. But I know plenty of professional people who get along fine without speaking a single word of French.
Deal Fanatic
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Oct 23, 2003
7955 posts
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8% higher income tax

Friend of a friend moved from BC to Montreal halfway through the year. Had to pay $14000 extra during tax season, while in BC it would've been either $0 or a small return.

Lets just say he didn't like living there to warrant that kind of cash differential.

You "recover" some of that through cheaper rent, but its fairly BS since rent prices are roughly $300-500 cheaper than Vancouver on a monthly basis (for new buildings, for old buildings it can be quite similar depending on area, have friends who pay $900 per month in Van, just across the bridge from downtown)

The french language factor also tends to exclude and push away a lot of minorities, as well as native english speakers, so its less of a crowd of people migrating to Montreal.

To top all of that off, the winters are more horrid than Toronto's, and there's plenty of people who already dislike Toronto winters, so Montreal would be out of the question.

Also, just remembered, overall incomes are lower for the same job you could be doing in another city. Doesnt always apply, but its true as a generalization, so, people who chase money, definitely dont chase it to Montreal, and if they do, they're an exception, not the rule.
Deal Fanatic
Dec 24, 2005
5444 posts
1046 upvotes
gomyone wrote: Umm - supply and demand.
I don't know why this is so hard

if Montreal was as desirable as here -- the price would be higher there.

Similarly if Toronto was as desirable with the supply of the Bay area our prices would also be the same.

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