The renter’s city mapped

Note Feb 27th, 2009: In the course of creating a similar map for Toronto for comparison purposes, I found that there may be a problem in the way I formulated this analysis. It appears that the following map shows correct proportional rent increases, however the overall magnitude of rent increases is higher. Basically, there should not be as much blue as I originally thought. So when I finally have enough time to correct this, I’ll put up a new, and accurate, version alongside Toronto and Vancouver maps. I apologize for the mistake and hope that nobody decided to move based upon this map. KC

Montreal is a renter’s city for the most part, the evidence of which is clear when changes in rents are mapped.  Between 1996 and 2006, only certain neighbourhoods experienced major increases in average rents.  The map below shows those changes by census tract.  If you cannot see the map, go to this page.

Changes in Montreal Rents, 1996 – 2006 Rents corrected for 19.8% inflation.

The reds indicate increases in rent, and the blues indicate decreases.  As seen, many of the central areas of the island experienced hikes in rent. The most surprising aspect of this map is that much of the island experienced decreases in rent, relative to the 19.8% inflation that occured in housing costs during the decade.

Essentially, rents in many areas of Montreal are not keeping up with inflation.  Some neighbourhoods, such as upper Westmount and the Old Port, show decreases probably because their rents were initially quite high.  The Multimedia City, southwest of Old Port, shows a very high increase in average rent mainly due to newly-built expensive lofts.  The Plateau and parts of Verdun, NDG, and St. Henri have many tracts where rents have increased, areas that are often characterized as gentrifying.

Gentrification is defined (when defined correctly) as a process in which those living in an urban area are deplaced by various forms of neighbourhood upgrading.  In areas such as the Plateau, where there has not been much change in the type of housing available (the early 1900s Montreal duplex and triplex), a rise in rent relative to other areas is a good indicator of gentrification.  Many areas of the Plateau, downtown, and Old Port are considered to be “fully gentrified.” Neighbourhoods such as Parc-Ex, Rosemont, and Hochelaga-Maisonneuve have not yet experienced major increases in rents, but are prone to future gentrification.

Personal income often does not keep up with inflation, especially for those earning modest amounts.  Thus, slow-growing rents are desirable for many.  Furthermore, Montreal landlords continue to enjoy the highest rental returns in Canada (due to the relatively low cost of buying).  So it seems that Montreal continues to be a renter’s city, with gentrification highly concentrated in certain areas.  In order for it to remain so, those neighbourhoods that are prone to gentrification must continue to have accessible rents.

Thanks to Amanda C. and Britta R. for their contributions to this post.