Montreal Multifamily Market Report

Rental needs remain elevated but with less upward momentum. Despite Montreal’s job market losing 2,400 jobs in 2023, a record increase in immigration, especially a significant inflow of temporary residents, supported demand in the multifamily sector. Coupled with a mild decline in new supply, the apartment vacancy rate dropped to 1.5 per cent last year. In 2024, the elevated influx of new immigrants is expected to continue, as Quebec plans to accept approximately 60,000 newcomers. Population growth may slow, however, as potential settlers could be discouraged from moving into the region by the province’s new French language requirement. In addition, persistently elevated interest rates will likely continue weighing on Montreal’s already sluggish job market, at least through the first half of the year. While long-term multifamily performance is expected to remain robust amid limited housing supply, vacancy could stabilization over the short term.