Montreal’s rental market is showing signs of a shift, with increasing vacancy rates reversing a trend of intense competition for apartments seen in recent years. According to reports from landlord associations, properties are sitting empty longer, and incentives like months of free rent are becoming more common.Teh changing dynamics are attributed to a combination of increased construction – particularly of higher-priced units – and a slowdown in immigration to the province.
Rental demand in Montreal is softening, according to two landlord associations, leading to a growing number of vacant units.
An increase in the construction of less affordable housing units in recent years, coupled with a recent slowdown in immigration, may be contributing to the trend.
Martin Messier, president of the Association des propriétaires du Québec (APQ), notes a clear shift: landlords are finding it increasingly difficult to fill vacancies. On voit des immeubles où le taux de vacance augmente, comme on ne l’a pas vu depuis de nombreuses années.
Éric Sansoucy, spokesperson for the Corporation des propriétaires immobiliers du Québec (CORPIQ), echoes this sentiment. Unlike recent years, when dès qu’on mettait une annonce, ça se louait très rapidement
, he’s observed a slowdown since last spring.
Je suis moi-même propriétaire et j’ai des logements à louer à une centaine de mètres de la station de métro qui ne trouvent pas preneur.
Shifting to a Tenants’ Market?
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Daniel André, a Montreal property manager, began to sense a change in the market last spring as he prepared lease renewals and new agreements.
Normalement, c’est beaucoup plus facile de louer des appartements pour le 1er juillet. Cette année, dès le mois de mai, je voyais des gens qui se décommandaient à la dernière minute pour des visites, dit-il. C’était récurrent.
Even offering flexible payment options hasn’t generated interest, he says. ça ne mord pas
.
André isn’t alone in increasing efforts to attract renters. He’s noticed listings offering one, two, or even three months of free rent.
Numerous listings for apartments offering a month of free rent, and sometimes more, have appeared on Facebook in recent weeks.
Photo: Screenshots
On n’est vraiment pas dans une zone où c’est simple de louer
, says Clément Beauchesne, general manager of Rentalys Solutions. He recalls that in recent years, demand was much stronger: Ça se louait comme des petits pains chauds.
Vacancy Rates Rise
The trend toward increased vacancies is being closely watched by industry observers. According to a mid-year 2024 rental market update released in July by the Canada Mortgage and Housing Corporation (CMHC), vacancy rates are expected to rise dans la plupart des principaux marchés
.
In Quebec, in centers with 10,000 inhabitants or more, the vacancy rate increased from 1.3% in 2023 to 1.8% in 2024.
Increasing Vacancy Rates
According to a mid-year 2025 rental market update released last July by the Canada Mortgage and Housing Corporation (CMHC), the vacancy rate is expected to increase dans la plupart des principaux marchés
.
In Quebec, in centers of 10,000 inhabitants and more, the vacancy rate increased in the rental market, from 1.3% in 2023 to 1.8% in 2024.
Francis Cortellino, an economist at CMHC, has also anecdotally noted the difficulty landlords are having finding tenants, as well as the incentives like free months of rent. Ça, c’est quelque chose de nouveau que je n’entendais pas nécessairement dans le passé.
He explains that vacancy rates vary depending on rental price points: Lorsque vous montez dans les gammes plus chères, où il y a beaucoup de logements neufs, les taux d’inoccupation deviennent beaucoup plus élevés.
In Montreal, in 2024, the vacancy rate was less than 1% for apartments under $1,150, but over 5% for apartments priced at $1,675 or more.
Immigration Slowdown
Daniel André manages the rental of a friend’s apartment, and the owner is covering the mortgage without rental income. The previous tenant, a French citizen, did not have their work permit renewed and had to return to France.
C’était le cas typique d’un jeune Français qui se voyait rester plusieurs années à Montréal, relate Daniel André. Des cas comme ça, malheureusement, ça arrive plus souvent qu’on le pense.
It has been several weeks since André has been able to rent the three-and-a-half apartment, which is located just minutes from a subway station.
Jean-Philippe Meloche, a professor at the School of Urban Planning and Landscape Architecture at the University of Montreal, points out that recent years have been marked by strong demographic growth essentiellement soutenue par l’immigration
.
Les gens qui arrivent ici, il faut les loger. Dans le marché locatif, ça a beaucoup coincé, surtout en 2023. Ça a fait en sorte qu’il y a eu des hausses de loyer.
Recently, however, both the Canadian and Quebec governments have tightened immigration policies. The problem: Ce changement arrive au moment où les promoteurs immobiliers sont incités depuis une couple d’années à construire plus parce qu’on leur dit qu’on est en crise de logement.
Demand has decreased, while supply has increased.
Representatives from the APQ, CORPIQ, and property managers interviewed all reported feeling the impact of immigration restrictions on rental activity.
According to Daniel André, other factors may be contributing to the imbalance between supply and demand. The cost of rent and the purchasing power of students, who may prefer to share accommodations or live with their parents, could be affecting demand.
Regarding supply, André points to the possible influx of former Airbnb properties onto the rental market since rules surrounding Airbnbs were tightened. He even suspects he’s seen some in apartment listings.
Tu le vois tout de suite dans les photos, dit-il. Quand tout est parfait, c’est quasiment un listing immobilier de vente.
On vit une crise d’abordabilité
Jean-François Tremblay, founder of the Institut québécois du logement and a partner at Domicile Fixe, also notes this ralentissement
, but particularly in logements qui ne sont pas abordables
.
Je vois des propriétaires pognés avec des unités trop chères
, he says.
He believes the market is now experiencing the consequences of construction that didn’t always prioritize affordability.
The housing crisis isn’t over, he insists. On vit une crise d’abordabilité.
Jean-François Tremblay, founder of the Institut québécois du logement and partner at Domicile Fixe
Photo: Radio-Canada / Ivanoh Demers
Véronique Laflamme, spokesperson for the Front d’action populaire en réaménagement urbain (FRAPRU), also believes Quebec is experiencing an crise d’abordabilité
. She isn’t surprised that higher-priced apartments are not finding tenants.
Ça traduit le fait que les logements qui ont été très récemment construits sont beaucoup trop chers pour la capacité de payer d’une partie importante des ménages locataires.
Patricia Viannay, coordinator of the Fédération des locataires d’habitations à loyer modique du Québec, confirms that housing affordability remains an issue for many people.
She believes the situation landlords are facing could be good news for renters, but only if rents actually decrease.
At the APQ, on va être vigilant pour voir où tout ça se dirige
, says Martin Messier. Je ne sais pas encore si c’est une tendance, mais il y a un signal – à tout le moins une préoccupation – des propriétaires qui indiquent que ce n’est pas la même dynamique de marché qu’on a connue dans les dernières années.
