Montreal Multifamily Market Report

Affordable units attracting greater renter demand. As vacancy trended down coming out of the pandemic and neared a record low of 1.5 per cent in 2023, average annual rent growth approached 10 per cent in each of the past three years. While average rents in Montreal do sit 16 per cent below the national average and 37 per cent below the level seen in Toronto as of the end of 2024, median household incomes here also trail other major metros across the nation. Consequently, the 30 per cent jump in effective rents since 2021, combined with rapid inflation in recent years, has eroded housing affordability. As a result, vacancy rates were less than 1.0 per cent for units with monthly payments under $1,150 and greater than 5.0 per cent for units rented above $1,675. Looking ahead, although easing rent growth in new builds are likely to mitigate some of these challenges, affordability will continue to be stretched. Renter demand is likely to remain stronger for more cost-effective segments of the market.