The rental landscape in the Greater Montreal region saw a significant shift last year, with the vacancy rate rising to 2.9% from 1.5% two years prior, as revealed in the Canada Mortgage and Housing Corporation’s recent report.
However, housing advocates caution against interpreting this increase as a sign of improved access to affordable housing. Shannon Franssen from the Coalition of Housing Committees and Tenants’ Associations of Quebec emphasizes that the available apartments in Montreal predominantly fall into the high-rent or luxury categories, making it challenging for individuals with modest incomes to secure suitable accommodation.
The report highlights a stark divide in the market trends of 2025. While vacancies in more expensive apartments renting between $1,900 and $2,800 per month stood at around six percent, the vacancy rate for more affordable units renting under $1,300 per month was a mere 1.5%.
Franssen underscores the difficulties faced by residents with moderate to low incomes in finding suitable housing, not just in Montreal but also in other parts of Quebec.
The coalition is advocating for stronger rent control regulations instead of solely relying on new housing construction to address the crisis. Franssen stresses the need for the provincial government to implement robust rent control measures to maintain affordability and prevent excessive rent escalations.
On the other hand, landlords are grappling with the evolving market conditions, with newer rental units in downtown Montreal facing challenges in attracting tenants. Martin Messier from the Quebec Landlords Association acknowledges the tough market conditions, noting that some landlords are offering incentives like free months of rent to attract tenants.
CMHC economists attribute the rise in vacancy rates partly to slower population growth, resulting in a decreased demand for rental properties. While the current scenario may offer slightly better prospects for renters compared to two years ago, housing advocates caution that Montreal’s housing market remains under considerable stress.
