The housing sector, which includes new construction, residential renovation, repairs, and maintenance, is an important sector. In 2015, the economic value of this sector in Canada was over $133 billion, or close to 7% of the GDP. In Quebec, its value was $26 billion, or close to 8% of its GDP.
Our sector creates many good jobs. In 2013, for example, renovation and new construction helped create more than 172,000 full-time jobs in Quebec.
The federal government also benefits in terms of tax revenues. A $270,000 house sold in Quebec, for example, yields $16,300 in tax and incidental revenues, from construction to the time of sale. A $35,000 renovation contract yields close to $2,900 in tax revenues for the federal government.
As to the real estate market, despite relative market stability in the past few years, new construction has dropped off.
In Quebec, there were close to 39,000 housing starts in 2016, a 2.7% increase over 2015. In the past four years in Quebec, housing starts have levelled off at about 38,000.
While these numbers are positive, over a longer period, housing starts have decreased by 33% since the peak in 2004. Total housing starts have fallen off from close to 58,500 in 2004 to close to 39,000 in 2016. Roughly 1,800 fewer homes are built in Quebec every year. This slowdown can in large part be attributed to a drop in the number of households in Quebec. There are other factors, however, which we will discuss.
The thing that must be understood and that we wish to emphasize here are the benefits associated with becoming a home owner and acquiring one's own home. Home ownership is a way for households to build personal wealth. Home owners have higher net worth than renters. Moreover, once home owners retire, they enjoy benefits representing between 10% and 15% of their income.
Quebec has a lower rate of home ownership, however. Home ownership is at 61% of households in the province, as compared to 69% for Canada as a whole.
The question we are asking today is how can we help families become home owners? We must reduce the main barrier to making a down payment, which is an obstacle for seven out of 10 young people, according to a survey we conducted.
This survey also showed that it takes young people about eight years to save enough for a down payment on their first home. A few years ago, the Government of Canada decided to protect the financial market, taxpayers, and households by tightening mortgage insurance rules. As you know, nine restrictions on lenders and mortgage insurers have been announced since 2008 in order to tighten access to mortgage insurance.
The most recent measure, announced on October 3, 2016, will have major repercussions on the real estate market in Quebec. Access will be more difficult for 74,000 households, the number of housing starts could drop by close to 6,900 in 2017, and home resales could fall by 7%.
These decisions have had a significant impact in Quebec, which is already lagging in home ownership.
I will now give the floor to my colleague, François Vincent.