Affordable social housing: An essential tool to reduce vulnerability and improve socioeconomic security, according to a new study

MONTREAL, May 4, 2026 /CNW/ - A new study carried out pro bono by McKinsey & Company on behalf of Centraide of Greater Montreal shows that large-scale residential projects are essential to improving housing affordability and socioeconomic security in the city. 

Released today at the Chamber of Commerce of Metropolitan Montreal's Strategic Forum on Major Projects, the study shows that a massive investment in affordable social housing is key to improving Quebeckers' quality of life and increasing Montreal's rank among major North American and European cities. Based on international indicators, this ranking reflects the ability of cities to provide their residents with an accessible living environment that provides socioeconomic security. The study currently has Montreal near the bottom of the list--far behind comparable urban centres such as Toronto, Vancouver, New York, Boston, and Vienna--and puts the entire metropolitan area (Montreal, Laval, and the South Shore) in last place.

Although Montreal remains relatively affordable, the report shows that key indicators are deteriorating faster compared to other major cities, with an accelerated increase in rents, a slowdown in housing starts, a severe lack of affordable housing for families, and exacerbated social impacts, such as visible homelessness. 

Alarming findings that uncover essential solutions

According to the study, nearly 17% of households in Greater Montreal have a negative residual income. This means that, after paying for private market housing, they do not have enough left to cover their other basic needs. The situation worsened in 2023, with 310,000 households facing this reality compared to 292,000 households in 2022.

Subsidized housing is still not being built quickly enough in Montreal. Only about 900 subsidized housing units have been added annually on average over the past 15 years. At this rate, it will take 250 years to provide adequate housing for low-income households. However, to meet their needs by 2030, Montreal needs to build 30,000 new subsidized housing units per year--or 34 times the historical rate.

Montreal compared internationally

After comparing Montreal to ten major North American and European cities, the study shows that the city's subsidized housing share of 4.8% is much lower than the rates of its peers, such as Toronto (6.1%), Vancouver (6.3%), and Vienna (up to 27.5%). Montreal also has the lowest rental vacancy rate, which exerts upward pressure on rent prices and puts renters in precarious positions.

"What gets measured gets improved. This groundbreaking study gives housing stakeholders tools to act, and an investment in transformational projects would give over 310,000 households --including thousands of families--the chance to lay down long-term roots in Greater Montreal. Measuring the scope of the problem leads to avenues for action," said Laurie Lanoue, Partner and Office Managing Partner for Montreal, McKinsey & Company.

"Major structural challenges, such as a lack of affordable social housing, keep us from creating the necessary conditions for people to thrive and fully participate in community life. Without affordable housing, too many families are forced to make impossible choices between living under a solid roof, putting food on the table, and meeting their children's basic needs," said Tasha Lackman, President and Chief Executive Officer of Centraide of Greater Montreal.

Transformational projects: A major tool for Montreal

The Hippodrome project is one of the city's biggest opportunities for swift, transformational action to reset the course of housing in Greater Montreal. The goal is to build 10,000 non-market housing units, including 4,800 social housing units, for over 30,000 people while meeting the needs of low-income households.

Other major projects are underway in Montreal, such as the Écoquartier Louvain and the revitalization of the Bridge-Bonaventure sector. The success of these projects will stem from close collaboration between governments, cities, community agencies, and private and philanthropic partners. In the field, Centraide works with communities that are already developing housing projects. It draws from its strength as a uniting force to bring together all stakeholders, promote constructive dialogue, and ensure that these projects truly meet the community's needs.

The report confirms that investing in large-scale projects is essential if Montreal is to remain a great place to live that is accessible to everyone and that is firmly future-focused. Now is the time to act together to build a stronger, fairer city that provides greater socioeconomic security.

Thank you to our partners and community agencies

Centraide of Greater Montreal and McKinsey warmly thank the community agencies that participated in this study, such as the Corporation de développement communautaire de Côte-des-Neiges and the members of the Comité communauté Namur-Hippodrome. They provided critical expertise and perspectives on social issues that optimized the analysis and led to relevant recommended solutions.

Read the study here ((French version only).

About Centraide of Greater Montreal    

A true agent of change, Centraide of Greater Montreal is a public foundation whose mission is to bring people together and take action for an inclusive and poverty-free Greater Montreal. To achieve this goal, it supports a network of 375 community agencies and projects in Laval, in Montreal and on the South Shore that improve the living conditions of people in a situation of poverty. Centraide works with the Greater Montreal population and with communities, businesses, institutions and philanthropic organizations. For more information or to contribute to Centraide's campaign: centraide-mtl.org/en/. 

SOURCE Centraide of Greater Montreal

Information: Annick Gagnon, Public Relations Advisor, Centraide of Greater Montreal, 514-437-3672, [email protected]