The rental housing market in Montreal is showing the first signs of weakening: the vacancy rate has increased, yet rising rents continue to make housing unaffordable for thousands of low-income families. This is stated in a new report by the Canada Mortgage and Housing Corporation (CMHC).
According to CMHC data, in 2025 the vacancy rate in the city reached 2.9%. The increase is attributed to a rise in completed construction and a decrease in the number of temporary residents — international students and temporary workers. At the same time, the highest number of vacant apartments is found in newly built high-rent buildings, while affordable housing remains in short supply.
Despite the increase in vacancies, rents continue to rise. The cost of two-bedroom apartments increased by 7.2% from 2024 to 2025. In some new and expensive buildings, apartments are sitting empty, and landlords are offering incentives — such as free months of rent — to attract tenants.
Rising prices are seriously impacting low-income renters. Many are forced to choose between paying for housing and meeting basic needs — food, medicine, and transportation. According to representatives of human rights organizations, this situation could lead to loss of housing and even homelessness.
Additional pressure has come from the Quebec Housing Tribunal’s decision, which recommended a record rent increase of 5.9% in 2025. For many renters, this means an additional $50–70 per month — an amount that becomes critical with an already tight budget. Starting in 2026, the Quebec government plans to change the method of calculating rent increases, but concerns remain.
Advocates emphasize that market mechanisms do not solve the problem of housing affordability. In their view, a key solution is the development of social housing, which is outside the logic of the private market. Investments in such projects, as well as stricter controls on rent increases, are seen as necessary measures to protect the right to housing.
Although in some areas — downtown Montreal, Notre-Dame-de-Grâce, and the South Shore — there are noticeable longer listing times and a decrease in interest from renters, affordable housing remains a rarity. Experts warn: without active government action, the affordability crisis will only deepen, especially for vulnerable groups, including single parents with children.
In the lead-up to the next elections, housing policy and investments in social housing, according to analysts, may become one of the key topics of public and political debate.
