Montreal's growing and changing market has also pushed up the growth of single family homes as a viable investment. Unlike condos, single family homes have their own advantages and disadvantages.
Younger demographic pushing up home prices:
As of 2016 and for the next 10 years there will be a continual shift of younger professions giving up their rental condo in place of starting families in the suburbs. While some of these individuals will be buying their home for the first time, there will always be those who still cannot afford (or do not wish) to buy their first time home and will continue to rent a single family home.
Single family homes can cost more but also tend to be less subjective to fluctuation which we see in the condo market. This is because of their uniqueness. You can see it as you drive down a road with only single family homes - land sizes vary, houses vary and features vary. These unique features ensure your home and it's price maintain it's value.
There aren't as many single family home rentals as there are condos. This can be seen as good signal for investors. As the younger demographic shifts, there isn't as much competition in any one area for those who want to continue renting which can help in lower vacancy rates and higher rental prices.
Single family homes can be easy or hard to rent depending on the features that property has. Naturally trying to rent out a $900,000 single family home is going to be a challenge. There will be less people with the money the associated higher rental payment, or anyone who can will look at putting that same money towards a purchase of their own. Just like condos there is a sweet spot (around 300-500k) where buying a single family home can yield a healthy and ongoing return.