Montreal Multifamily Market Report

Market conditions to continue loosening in 2026. Montreal’s rental demand softened last year as population growth slowed. The impact was more pronounced in neighbourhoods on the Island of Montreal, including Downtown and Notre-Dame-de-Grâce, which had attracted a large share of newcomers during the recent immigration surge. At the same time, completions approached a historic high, contributing to a noticeable rise in the vacancy rate to 2.9 per cent. Overall vacancy remained low, but conditions were looser in newer properties, with buildings delivered after July 2022 recording a significantly higher vacancy rate of 8.4 per cent. Looking ahead to 2026, resident gains will slow further amid tighter immigration policies, while uncertain trade policy continues to cloud a still-soft economic backdrop. As such, owners — particularly of newer buildings — are likely to face longer lease-up periods in an increasingly competitive environment.