Home Construction in Quebec - What Is the 2025 Outlook?

In the last few years, Quebec media has spoken endlessly about the drop in housing starts within the provincial boundaries. New residential builds weren’t catching up with the demand, contributing to the housing shortage affecting most of Quebec.

The drop in housing starts resulted from several factors, including economic uncertainty, increasing building material costs, and labour shortage. Confronted with this situation, the different levels of government are working to roll out programs to get construction projects back on track. 

To assess whether the initiatives implemented have been fruitful, let’s take a look at the current state of the industry, as well as this year's forecast.

What Is the State of Quebec’s Construction Market in 2025?

Source : DCRD Construction

In 2023, La Presse, an online newspaper, reported a shortfall of 1.2 million homes, to be built by 2030. This lack of housing partially explains real estate prices and the growing hardship Quebec families have in finding a suitable dwelling. 

To achieve said number, 150,000 homes have to be built within the year’s end, which is nowhere near the current situation. The actual number of homes built is closer to 35,000–40,000. The last two years—2023 and 2024—were little productive in the matter, and making up for lost ground is urgent.

A Drop in Housing Starts: Still a Trend in 2025?

In 2025, we’re seeing a slight rise in housing starts, but this increase is far from meeting the needs. After two years during which the drop in housing starts left economists and housing specialists uneasy, it was time to take action. While the increase is rather modest in numbers, it’s still a bump nonetheless.

Which Housing Starts Are Forecasted for the Upcoming Months?

According to a report published by the APCHQ, the number of housing starts will continue to rise over the next two years. It’s good news, but it’s still not enough to make a significant difference in real estate prices and the housing shortage. 

The report was also published before the current political and economic situation, which is as unpredictable as ever, could be considered among the factors that may affect recovery. It remains to be seen if the situation will impact new real estate and renovation projects. 

Which Construction Projects Are Prioritized Right Now?

Still according to the APCHQ’s forecasts, we’re talking about an average increase of 11% in housing starts for rental units and 10% for single-family homes. In both cases, the demand is overwhelming, especially in big cities like Québec, Laval, Longueuil, and Montréal, as well as in mid-size cities like Sherbrooke, Granby, Drummondville, and Saguenay.

What Does the Future Hold for Home Construction?

Source : BCS Construction

Mirroring a slew of other fields, the construction industry has been, over the last few years, evolving right before our eyes. There’s a shift in what people need, cities are fast-growing, suburbs are expanding, and technology is changing at lightning speeds. 

This can help improve project efficiency and execution speed. The labour shortage is still having an impact, but incentives urging people to join the construction industry appear to be yielding results. These are all tasks that can’t be completely replaced by machines or artificial intelligence, so there’s work to be done.

Will Tariffs Impact Home Constructions?

Short answer: Probably. At the time of writing this article, the situation regarding the tariffs imposed by the American government is still unclear, and somewhat chaotic. Some tariffs will come into effect while others are pushed to a later date. 

One thing’s for sure, the effects will be apparent almost everywhere, including in Quebec’s construction industry. The tariffs established by the United States are targeting building materials (lumber, steel) and the economic chaos in which we find ourselves could lead to inflation, which will affect the cost of materials and the salary requests from construction workers. 

New Builds in 2025: What Should You Know?

Source : Les Constructions S. Lepage Inc.

Dreaming of building a house? Given the current economic and political climate, the only way to make your dream come dream is to be well-prepared and methodical when putting together your project.

Who Should You Hire to Build a New Home?

It depends on the type of project you’re looking to undertake. For a single-family home with a unique blueprint, one tailored to your preferences and needs, you have to hire an architect or an architectural technologist to draw the plans. Otherwise, you can buy a ready-to-build prefab home, designed by a specialized company.

You can also buy a house designed by a real estate developer. This type of project often groups a large amount of similar or identical homes, built on the same land development. 

No matter what you choose, make sure the business with which you deal is reputable, holds all the necessary licences, and already has an impressive portfolio of former projects to showcase.

The steps and the different processes, from home design to move-in ready:

• How to Build a House - What Are the Basic Guidelines?

•  Home Building Guide - Your Go-to Project Checklist

How Much Does a New Build Cost in Quebec?

The price of a new build hinges on several factors, including area of residence, materials used, size of home, and labour availability. On further inspection, average prices are between $175 and $325 per square foot, ranging from “starter home” to luxury residence. A 1,800-square-foot dwelling costs between $315,000 and $585,000. 

Add to the above-mentioned price point the cost of purchasing the plot, preparing said land, and hooking up municipal utilities. This goes without saying that given the current economic situation, prices risk changing within the next few months.

About budget planning to build a house:

• New House Construction Cost - How Much Does It Cost in 2025

• What Are the Costs to Consider When Buying a New House?

• Planning Your Budget for Your Self-Build Project

Are There Funding Programs or Grants for New Construction?

The different levels of federal and provincial governments offer financial assistance to promote home ownership, including grants and tax credits. These programs are often available to first-time homeowners. Here are some examples:

In Quebec:

• The Home Buyers’ Plan (HBP)

• First-time home buyers’ tax credit

• Tax-Free Home Savings Account (FHSA)

• New housing rebates GST and QST

In Canada:

•  First-time home buyers’ tax credit

• The Canada Greener Homes Loan (to buy an eco-friendly home)

Many municipalities also have financial assistance programs dedicated to helping first-time home buyers purchase their first dwelling, serving as a way to promote homeownership and new builds. Contact municipal authorities and services to learn more about the available programs and whether you’re eligible.

New Builds 2025 FAQs

Will there be a spike in construction costs in 2025?

Yes. New construction costs in Quebec are increasing and there are no signs that prices will drop. Everything is increasing, from construction workers’ wages to material costs. Many developers have already announced a spike in base prices for new builds.

Buying a new house in 2025: What should you know about interest rates?

Interest rates on bank loans are reviewed several times a year, and long-term predictions are often inaccurate. According to some experts, there will be a drop in both variable interest rates and on some short-term fixed interest rates. What’s left to be determined is how the new economic developments will impact the industry.

Are real estate prices expected to drop in 2025?

Unfortunately, nothing points to a drop in the price of homes anytime soon. Political instability, tariff wars, increasing construction costs—everything seems to be pointing at stable home prices or a slight bump in asking prices.