Montreal Rental Market Trends in 2025 Revealed: Vacancy Rates Up, Rents Soaring
A recent report by the Canada Mortgage and Housing Corporation (CMHC) sheds light on Montreal’s rental market in 2025. While the city’s vacancy rate has slightly increased to 2.9%, indicating a slight easing, rents continue to climb, making it challenging for low-income households to find affordable housing.
The rise in vacancy rates is attributed to an uptick in completed construction projects and a decrease in temporary residents, according to the CMHC. However, newly built units have the highest vacancy rates, while affordable housing options remain scarce. The increase in housing completions and a decline in international students and temporary workers have also contributed to this trend.
Despite the increase in available units, Catherine Lussier from the advocacy group FRAPRU expressed concerns that the rental burden on tenants persists. She highlighted a significant 11.9% rent increase within just one year, emphasizing that while more units may be available, the affordability crisis deepens.
Notably, rents for two-bedroom apartments surged by 7.2% between 2024 and 2025, with condominium units commanding higher prices. Some newer high-priced units are sitting empty, leading landlords to offer incentives like rent-free months to attract tenants.
Lussier pointed out the financial strain on low-income households, noting how rent increases, including the legal 5.9% annual raise recommended by the Housing Tribunal, exacerbate the situation. She stressed the urgent need for social housing solutions to ensure housing rights are respected and advocated for better tenant protection and real rent control.
As Montreal grapples with limited affordable housing options, particularly in areas like Downtown Montreal and Notre-Dame-de-Grâce, the pressing need for social housing investment becomes more apparent. Lussier warned of the dire consequences if housing affordability is not promptly addressed, underscoring the provincial government’s responsibility in taking decisive action to alleviate the crisis.
Keyphrase: Montreal rental market
