Rezoning Laval’s agricultural land would allow construction of at least 70,000 homes, says the MEI

Montreal, August 15, 2024 – Reforming agricultural zoning to ease a transition toward residential zoning would help to make housing affordable again, according to a study published this morning by the Montreal Economic Institute.

“The rapid increase in housing prices is affecting young middle-class families, who are finding it more and more difficult to afford a home that meets their needs,” says Gabriel Giguère, senior policy analyst at the MEI and author of the study. “The fact is that there is a lot of land in our cities that could support households if zoning allowed.”

The MEI study indicates that it is currently much easier in Quebec to get an application for agricultural zoning approved than it is to rezone land already deemed agricultural.

Between 2020 and 2023, Quebec approved applications to protect agricultural zoning equivalent to 95 per cent of the area studied, or 50.01 square kilometres.

Over the same period, Quebec approved only 37 per cent of the area covered by applications for exclusion from agricultural zoning, or 7.43 square kilometres.

This contributes to restrictions on adjustments of housing supply, which in turn pushes housing prices higher, explains the author.

The study focuses on the City of Laval, where 30 per cent of the land, or 70.5 square kilometres, is zoned agricultural.

Assuming the same population density currently seen on Laval’s non-agricultural land, this represents a potential 70,000 new housing units, capable of accommodating a total of 181,000 people. That’s as much housing as exists in the entire city of Lévis, the seventh most populous municipality in Quebec.

“Laval is a case in point: here we have a large area, close to our metropolis, that could accommodate tens of thousands of additional households if it were allowed to reach its full potential,” explains Mr. Giguère. “By simplifying changes to zoning, we could help nearly 70,000 families find a home that meets their needs, and at prices they can afford.”

The Canada Mortgage and Housing Corporation estimates that about 1.2 million additional homes will need to be built in Quebec between now and 2030 to restore affordability.

The MEI study is available here.

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The MEI is an independent public policy think tank with offices in Montreal and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.

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