Tashi Farmilo
LJI Reporter

The demand for housing in Gatineau is rapidly outpacing supply, pushing rental prices higher
and exacerbating affordability challenges in the region. Now, a legal battle is unfolding as
developers challenge a controversial new regulation that adds thousands of dollars in fees to
new home construction.

The latest housing market forecast from the Association des professionnels de la construction et
de l’habitation du Québec (APCHQ) highlights an urgent need for increased housing
development as population growth continues to climb. The report, Bulletin de l’habitation – Prévisions
2025-2026 outlines a stark reality: rental vacancy rates remain stubbornly low, construction
projects are burdened by labour shortages, and migration patterns continue to push more
residents across the Ottawa River from Ottawa to Gatineau in search of affordable living.

“The Gatineau housing market is under significant pressure,” said David Goulet, director of
economic service at APCHQ. “With interprovincial migration on the rise and new household
formations accelerating, the supply of available housing simply isn’t keeping pace.” Goulet is a
key expert on the Gatineau housing market. His insights focus on the pressures caused by
interprovincial migration, low vacancy rates, and increasing rental costs, as well as advocating
for policy changes to incentivize new construction.

According to the report , the number of households in Gatineau is projected to grow by 2.2%
over the next two years. But while demand soars, supply remains constrained, particularly in the
rental sector. Gatineau’s vacancy rate increased slightly from 1% in 2023 to 1.9% in 2024,
which was still well below a balanced market threshold.

Rental costs, in turn, have surged. In 2024, the average rent in Gatineau jumped by 7.6%
compared to the previous year, a growth rate exceeding national inflation. This rise has
disproportionately affected low- and middle-income tenants, who are finding it increasingly
difficult to secure affordable housing.

“The crisis in Ottawa’s housing market has had a direct impact on Gatineau,” said Nicolas
Brisson, director-general of APCHQ Outaouais and Abitibi-Témiscamingue. “Many people are
moving across the river for lower costs, but that’s putting even more strain on our already tight
market.”

Despite these challenges, the report signals a glimmer of hope. Housing starts in Gatineau
increased by 33% in 2024, driven primarily by multi-unit rental projects, and are expected to
climb another 13% in 2025 and 2026. However, barriers remain. Rising material costs and
persistent labour shortages are slowing the pace of new developments, while bureaucratic
hurdles continue to delay project approvals. “The permitting process in Gatineau is a major
obstacle,” Brisson said. “It lacks efficiency and predictability, and that’s preventing new housing ​
from being built quickly enough to meet demand.”

Now, the APCHQ and a group of developers are taking their frustrations to court, filing a judicial
review application before the Superior Court of Quebec. They are challenging Gatineau’s
recently implemented development fee regulation, which requires real estate developers to pay
nearly $4,000 per new home built in western Gatineau. The regulation, which took effect in
January, establishes a royalty fund to help finance three major infrastructure projects: the
widening of Vanier Road, the construction of a new fire station, and a future ecocentre. The city
anticipates 40,000 new homes will be built in an area stretching from the western edge of
Aylmer to Moore Farm over the next 15 years.

The APCHQ argues the fee is illegal, claiming the city did not follow proper procedures under
the Land Use Planning and Development Act. Developers warn that the added cost will
ultimately be passed down to homebuyers and renters, further exacerbating affordability issues.

The City of Gatineau defends the regulation, saying it is necessary to ensure infrastructure
expansion keeps pace with rapid development. It points to several initiatives aimed at
supporting housing construction, including efforts to simplify administrative procedures and
create a dedicated team to assist developers. The city says it is working to reduce delays,
improve collaboration with the construction sector, and provide more predictability in the
approval process. At the same time, it maintains that all projects must comply with regulatory
frameworks and public consultation processes to ensure responsible development.

The city also emphasizes its financial support for affordable housing, including making municipal
land available for housing projects under its real estate policy and offering funding through the
Programme d’habitation abordable Québec (PHAQ). Over 1,500 social and affordable housing
units are being closely monitored to accelerate their development under the Un toit pour tous
initiative. It argues that while modifications to processes may be necessary, maintaining
regulatory rigour is crucial for sustainable urban planning.

The APCHQ continues to push for policy changes, calling on Gatineau to suspend the
development fees in western parts of the city and instead focus on incentivizing construction
through tax exemptions and streamlined approvals. “The city has the financial means to address
this issue without imposing additional burdens on developers and buyers,” Goulet said. “In
2024, Gatineau had nearly $479 million in unused funds. Now is the time to invest in housing
infrastructure before the situation worsens.”

Photo: Gatineau’s housing market is under growing strain as soaring demand, rising rents, and
slow construction outpace supply, prompting urgent calls for policy changes and infrastructure
investment. (TF) Photo: Courtesy of APCHQ