Montreal's Rental Market Shift: From Post-COVID Boom to Tenant's Advantage
Over the past several years, Montreal's rental market has had one of the most dramatic transformations in recent memory, shifting from a crazy, post-COVID demand surge to a more balanced market where renters now have leverage and choice.
The Post-Pandemic Boom: A Tidal Wave of Demand
In the wake of the pandemic, Montreal emerged as one of Canada's most attractive cities. Workers, students, and families streamed into the city, attracted by the affordable cost of living compared to other major metropolitan cities. This increase in talent, both domestic and international, pushed demand for rental housing to new heights. Rents jumped, and apartments that might have stuck around on the market before covid, were being snatched up in a matter of hours.
Developers responded swiftly. New purpose-built rental buildings began to rise across the skyline. Renovation projects began springing up as well in established neighbourhoods. The result? A dramatic increase in available housing stock, but also rapidly climbing rental prices.
According to recent Canada Mortgage and Housing Corporation (CMHC) data, the average rent for two-bedroom units in Montreal rose by roughly 7.2% between 2024 and 2025, while vacancy rates ticked up slightly as supply caught up with demand.
A Market in Transition: Easing Demand and New Realities
Coming to today, and the picture is noticeably different, several factors have eased pressure on the rental market. With slower population growth federal and provincial policy changes have reduced the pace of immigration, particularly among temporary and international students.
More inventory has been coming online across the city. The wave of new construction built to meet the top end of the demand is now complete in many areas, meaning more units are available than in the height of the boom. CMHC notes that landlords are offering incentives, such as multiple months rent-free, to attract tenants in a more competitive environment.
Not All Neighbourhoods Are Equal
While the broader rental market in Montreal is cooling off, the shift is not the same across the city. Demand remains strong in specific neighbourhoods, particularly those close to universities, major transit hubs, and employment centres. Areas near downtown, Griffintown, the Plateau, and well connected parts of the South Shore continue to attract steady interest. Smaller, well-located units in these zones are still moving quickly, even as larger buildings elsewhere struggle to fill vacancies.
This uneven demand is creating a two-speed market. Some landlords are offering aggressive incentives to attract tenants, while others in high-demand pockets maintain stable pricing with little need for concessions. For renters, this means that while there are more choices, timing and location still play a major role in securing the right apartment.
What This Means for Renters and Landlords
For renters, this shift is a nice change. Where competition was once intense and options scarce, tenants today have more choices and bargaining power, discounts, flexible leasing terms, and concessions like rent-free periods are becoming more common, a sign of a market adjusting to meet demand rather than outpacing it.
For landlords and property managers, the message is clear, traditional rental marketing and tenant search strategies may no longer be sufficient. With more units on the market, innovative tools and streamlined tenant communication are essential to stay competitive.
Rentack.com: Helping Navigate Montreal's New Rental Reality
This is where platforms like rentack.com shine. In a shifting market, renters want a fast, simple way to find apartments quickly and connect as soon as possible with a rental agent. Not only does Rentack do that but it allows you to book your visit right away with the agent themselves.
Looking Ahead: A Balanced Market, but Still Challenging
Montreal's rental market is still changing rapidly. Average rents remain higher than historical norms, and vacancy rates still being high, are not at levels seen in weaker markets. What's changed is who holds the advantage, the power has shifted slightly back toward renters.
For anyone searching for apartments, whether you're newly arrived, relocating within the city, or simply exploring your next home, understanding these trends is key. And tools like Rentack's Montreal rental search are more valuable than ever in helping you find the right place with less hassle.