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Market Report

Montreal Multifamily Market Report

3Q 2023

Population Growth and Employment Opportunities
Aid Apartment Performance, Despite Supply Surge

Growing population a tailwind for apartment demand. Montreal witnessed a rapid rebound in population growth last year. Immigration increased roughly 700 per cent annually, due to the removal of pandemic-related restrictions, the return of in-person learning and ample employment opportunities. The artificial intelligence, healthcare, aerospace and advanced manufacturing sectors aided this immigration tally. Consequently, apartment vacancy fell 100 basis points to 2.0 per cent, helping annual rent growth reach a record level that surpassed 9.0 per cent. This trend has continued into the first half of 2023, with Québec’s population advancing 2.1 per cent annually. As a result, apartment demand is likely to hold, despite a potential economic slowdown. Given a historic amount of new supply entering the market last year, coupled with still-elevated levels expected this year, the metro’s vacancy rate is forecast to stabilize at 1.9 per cent, with annual rent growth moderating slightly to 6.7 per cent.

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