The CMHC’s latest Housing Market Insight, entitled “Who are the homebuyers in the various sectors of Greater Montréal? A first comprehensive study on the topic,” provides the first detailed profile of homebuyers in the Greater Montreal Area.
The results of this data, sourced from the 2016 Census, help us gain a better understanding of the dynamics of Montreal’s real estate market.
What are the origins, ages, and median incomes of Montreal homebuyers? What types of homes are they looking for?
Origin of buyer households
- 80% of homebuyers had lived on Montreal Island for at least a year before purchasing a home.
- Le Plateau-Mont-Royal, Ville-Marie and Île-des-Sœurs attracted the most buyers from outside the GMA (15%)
- Griffintown attracted the most buyers from the Montreal suburbs (25%).
- In the inner and outer suburbs of Montreal, many household buyers come from Montreal Island. For example, 30% of single family home buyers in Laval come from Montreal.
- The rest of suburban buyers came from the suburb itself, or from surrounding suburban areas.
In summary: It’s a tradeoff. Young urbanite families with kids are moving from Montreal Island to the suburbs, while young single people from suburbs areas outside Montreal are moving to downtown condos.
Age group of buyer households
- In Montréal, condo buyers are largely first-time homebuyers (households below the age of 35).
- Buyers over the age of 55 are most attracted to Anjou, Saint-Léonard and Île-des-Sœurs.
- Most single-family home buyers in expensive areas (Montreal Island) were between the ages 35 and 55.
- Most single-family home buyers in affordable areas (North Shore) were first time homebuyers under the age of 35.
Duplexes and Multiplexes:
- Most buyers of income properties in Montréal and Laval were aged 35 to 55.
In summary: Young first time homebuyers are more likely to be restricted to the condo market, due to their lower budgets, while older buyers were more likely to opt for single family homes.
Type of buyer households
- 40% – 50% of condo buyers were one person households.
- The second-largest group of condo buyers were couples without children.
- Few families with children in affordable areas chose to buy a condominium.
- In contrast, in some of the more expensive sectors of Montréal, such as Outremont, families were the main buyers of condominiums (45%).
Single Family Homes:
- In all sectors of the CMA, most single family home buyers were families.
- In expensive areas, the proportion of buyers with children was higher. This can be partially explained by the fact that only older buyers could afford to buy there, by which time they were more likely to already have children.
- Buyers of income properties were largely families, couples without children and one-person household.
- The proportion each of these household types represented varied from one sector of the CMA to another.
In summary: Single homebuyers are more likely to buy condos, families are more likely to buy single family homes, except in very expensive areas where families are also likely to buy condos.
Income of buyer households
- Single family home buyers in the CMA had a higher median income (for 2015) than buyers of condominiums or income properties.
- This is true across all age groups and household types.
- As expected, buyers in most affordable sectors had lower incomes than buyers in expensive sectors.
- The median income of single-family home buyers (households) in Montréal was $107,100.
- 55% of these households had an annual income over $100,000.
In summary: High earning buyers tend to buy single family homes, while low earning buyers buy condos.
To see the full report, refer to the CMHC Housing Market Insight, which includes buyer data per neighbourhood.
This article, Who’s Buying What? A Look at the Data on Montreal Homebuyers, appeared first on Shupilov News.