The signs have been everywhere for some years now: global warming is here to stay. Extreme weather phenomena, such as floods and violent storms, are on the rise.
So much so that climate change has in many respects transformed Québec’s real estate sector. Homeowners, investors as well as future buyers must now all contend with the consequences of these climatic shifts and adapt to the new real estate reality.
Decreasing Attractiveness of Certain Neighbourhoods
Certain regions are at greater risk of flooding during high-water periods, heavy rainfall or rapid snowmelt. Consequently, more and more people are snubbing properties located near rivers, lakes and other bodies of water, for fear of having their homes flooded. At the same time, the Québec government is in the process of mapping flood zones to get an accurate picture of the situation and guide citizens.
Additional Protection Measures
Certain municipalities are likewise reinforcing dikes to minimize flood risk to homes near bodies of water. Homeowners living within these flood zones must equally act to safeguard their properties, like having drainage systems installed. Other property protection measures include:
- Installing check valves: these devices prevent water from flowing back up plumbing lines.
- Elevating electrical outlets: this involves repositioning switches and electrical systems above the high-water mark.
- Using waterproof materials: this means favouring more water-resistant materials when carrying out renovations, such as concrete, stone or ceramic tiles for basements and walls.
Fluctuating Land Values
Over the coming years, regions most vulnerable to the effects of climate change, such as coastal areas or flood-prone zones, could see their property values decline. Conversely, less exposed regions may become more attractive, boosting demand and real estate prices.
The Impact on Home Insurance
With the increase of climate event-related claims, home insurance premiums are likely to rise (including for people not living in a flood risk zone), even rendering some properties uninsurable. Homeowners must therefore anticipate these additional costs and weigh the risks before investing.
Energy Efficiency and Building Codes
The consequences of climate change have led to the introduction of new building standards prioritizing energy efficiency and extreme weather resilience. Homeowners and developers must comply with these standards when building or renovating to create more sustainable homes, which should also increase their value over the long-term.
Government Focus on Densification
Climate change and the importance of protecting the environment have pushed the Québec government to focus on densification throughout the province. This means, for example, prioritizing developments that can provide housing for several people within a smaller living area. We will no doubt see an even greater number of condo and apartment towers being built across Québec over the coming years.
New Regulations
As previously mentioned, governments are adopting new legislation to mitigate the effects of climate change. This may include laws and regulations which restrict construction within designated zones, mandatory renovations to improve energy efficiency, and, eventually, eco-taxes. Homeowners must keep abreast of these changes to avoid surprises and ensure compliance with the new requirements.
Homeowners will have no other option than to adapt to this new reality reshaping the future of Québec’s real estate market. Long-term planning is key!