Rent in Montreal: Is Housing Becoming More Affordable or Is This a Temporary Lull?
Hello, friends! Today I am sharing news with you that includes plenty of interesting information. Several important events are currently unfolding that will impact tenants or those considering a move. Various factors are hitting our wallets, such as food and fuel prices, so any news about price decreases is essentially good news! Recently, reports have emerged suggesting that rent affordability in Canada has begun to improve compared to the historically high levels of the past few years.
Latest data shows a trend toward a decrease in the portion of average income that families spend on housing. This is a significant shift compared to the record figures of 2022 and 2023, when people simply could not afford to pay for their homes.
Montreal Statistics and the Actual Cost of Living
Statistics show a moderate improvement. The average portion of rent within a family budget has dropped to 30.3% as of October 2024, whereas in October 2023, it stood at 34.2%. This directly influences how real estate in Montreal is evaluated by market experts.
Price reduction: the average asking rent in Montreal as of October 2023 ($2,052) has decreased to $1,957, representing a drop of nearly $95.
Affordability threshold: according to the National Mortgage Corporation, the housing affordability threshold is the level at which no owner should spend more than 30% of their pre-tax income on their home. We are close to reaching it.
As many specialists note, the situation has not improved radically. Rents in Montreal have grown by more than 70% over the last 6 years, and the recent slight price reduction only marginally softens the impact of that substantial growth.
Comparison with Other Major Cities
However, compared to other major cities, Montreal remains very stable. Even when the housing market was going through its worst period, the portion of earnings used for housing here did not reach the sky-high levels seen in Toronto and Vancouver.
This is an interesting comparison, considering that average rent in Toronto is $500 or $600 higher than here. Historically, Quebec has developed a culture of protecting tenant rights, as well as specific regulatory mechanisms that prevented sharp rent increases. However, this is no longer enough to overcome inflation. We are currently living in an era where rent increases approved by courts range from 2% to 6% as a result of general economic pressure.
The Large Shortage of Apartments is Also a Problem for Families
In the daily news flow, another market is being discussed where there is constant price growth for three-bedroom apartments. While prices for smaller apartments have dipped slightly, housing prices for families continue to rise due to a supply shortage.
Reason for price growth: there are very few three-bedroom apartments on the market, meaning we are in a critical shortage situation.
Market trends: developers are building more one and two-bedroom apartments because they are easier to finance.
Result: young families cannot find affordable housing without a significant down payment or large cash reserves, which makes it significantly harder for young couples to buy their first home or find a suitable apartment for rent.
Even in Montreal, it is currently almost impossible for someone on minimum wage to find an affordable two-bedroom apartment. This is a reality that must be considered when planning expenses. In such moments, a professional real estate agent in Montreal becomes an indispensable assistant for evaluating long-term rental or purchase prospects.
Summary and Recommendations
The housing market in 2026 continues to surprise. Although the burden on our wallets in Montreal has slightly decreased, finding quality and affordable housing remains a challenging task.
Advice for buyers: In conditions where rent still takes a significant portion of income, it is worth getting a mortgage pre-approval in advance. This will help you lock in terms and precisely understand how much more profitable owning your own home can be compared to renting.
Advice for sellers: The market revival is your chance, but competition and bank requirements for buyers dictate the need for perfect preparation of the property for sale.
If you are planning to buy or sell property, contact me. I will help you navigate current trends, find the best property, and ensure full legal security for your transaction under Quebec laws.
Denis Kornienko. Your real estate expert in Montreal. Helping families build a secure future in Canada.