The cost of housing in Montreal and Vancouver can vary significantly. Vancouver has a reputation for being one of the most expensive housing markets in Canada, with an average home price of around $1 million. Meanwhile, Montreal offers a more affordable option with an average home cost of approximately $400,000. The cost of housing in Vancouver has seen a steady rise in recent years, making it difficult for many to enter the market, while Montreal’s real estate market has been more stable with prices increasing at a slower rate.
It’s important to consider that both cities offer a diverse range of housing styles and properties, from high-rise apartments to single-family homes. In Vancouver, high-rise apartments are a common housing choice, while in Montreal, residents can choose from a mix of apartment buildings and standalone homes. The cost of homes will depend on several factors, including location, property size, and type.
Photo: North Vancouver
Rental markets
Montreal and Vancouver are two of the largest cities in Canada and are renowned for their rich cultural heritage and stunning landscapes. However, the cost of living between the two cities can differ significantly.
In terms of housing, Montreal is typically more affordable compared to Vancouver. A one-bedroom apartment in Montreal usually costs around $1,100 per month, while it could cost up to $2,000 in Vancouver. Home prices in Vancouver also tend to be more expensive, with the average cost of a home estimated to be around $1 million. In contrast, the average cost of a home in Montreal is around $400,000.
Food, daily necessities, and entertainment costs are also generally lower in Montreal compared to Vancouver. The city boasts a vast selection of affordable restaurants, cafes, and grocery options. On the other hand, food and entertainment prices in Vancouver are known to be higher, particularly in tourist-heavy areas.
Transportation costs between the two cities are relatively comparable, with monthly transit passes costing about $100. However, Montreal boasts a more comprehensive public transportation system, making it easier to get around without a car. Owning a car is more common in Vancouver, which can result in added expenses.
Both cities offer unique benefits, but the cost of living in Vancouver is typically higher than in Montreal. However, it’s worth considering that salaries in Vancouver tend to be higher, so the cost of living can depend on an individual’s income. The choice between the two cities ultimately comes down to personal preferences and desired lifestyle.
Photo: Montreal properties
Montreal real estate market
The Montreal real estate market is facing difficulties due to increasing mortgage rates, uncertainty, and inflation. Reports indicate that the average sale price of a home in Montreal has dropped by 3.1% to approximately $550,000 over the past 12 months. Additionally, home sales in Montreal have declined by 40% compared to the previous year as many participants in the market are hesitant to engage until stability is restored.
First-time homebuyers in Montreal can leverage the present market circumstances by negotiating for a lower price. This opportunity is especially prevalent with developers who may be eager to unload their newly constructed properties. Holding onto a property for an extended period and making substantial interest-only payments to the bank is not a desirable outcome for developers.
Tips for finding a cheap Montreal property
The best way to get a cheap home in a falling market is to keep an eye on market trends and be prepared to act quickly when a property that meets your criteria becomes available.
Keep a track of the local real estate market by regularly reading real estate reports and news, visiting open houses, and talking to Realtors. Many Canadians love investing in real estate, but don’t understand property laws, and don’t do enough research.
Determine how much you can afford to spend and stick to it. This will help you avoid overspending and getting into financial difficulties. As the CEO of Clearway Law (when we were a law firm), I’ve spent a lot of time in foreclosure court. It’s not a fun place to be.
Get pre-approved for a mortgage loan before you start shopping for a home. This will give you a better idea of what you can afford and help you make a more competitive offer when you find a property. If you can make offers that are not subject to financing, you might be able to get away with lowball offers.
Montreal vs Vancouver Cost
Be open to different types of properties, such as foreclosures, short sales, or fixer-uppers. These properties may be priced lower, but they will likely require more work and investment. If you are good with your hands, this is a great way to add value to your property for a low cost.
A Realtor can help you find the right property, negotiate the best price, and handle the details of the transaction.
In a falling market, properties may sell quickly, so be ready to act fast when you find one that meets your criteria. Have your pre-approval letter, proof of funds, and other documents ready to go.
By following these steps, you can increase your chances of finding a cheap home in Montreal.
Why is the property market falling?
Buying a property to rent it out used to be very popular in Montreal. But these types of buyers may face challenges as high mortgage rates impact their rental income. This has led to fewer buyers in the market, and therefore less demand.
However, landlords can still make a profit in areas with high rental income in proportion to house prices. The areas with the highest rents in Montreal are Pointe-Claire, Mont-Royal, and Outremont.
The prospects of flipping properties for short-term gains are currently limited in Montreal’s real estate market. This strategy may not be a viable option in the next two years.
Despite the challenges posed by rising mortgage rates, Montreal’s property market provides opportunities for buyers. Taking advantage of discounts through informed negotiations can prove advantageous.
On the other hand, investors seeking to purchase properties for rental purposes may face difficulties, but opportunities still exist. It is crucial to stay up-to-date and make informed decisions in this ever-changing market. Conducting thorough research is essential for success.
We hope you found this Montreal vs Vancouver cost analysis helpful.