Quebec Real Estate Market Trends in 2025

Factors Influencing the Market in 2025

In 2025, Quebec’s rental market is shaped by a mix of economic, political, and demographic factors. The gradual decrease in interest rates, initiated by the Bank of Canada in 2024, has improved access to financing for real estate projects. However, it hasn’t been enough to address the shortage of rental housing. Supply remains limited—especially in major urban centers—while demand stays high.

Government measures, such as the \$302.6 million investment to support access to affordable housing, aim to correct this imbalance, though their effects will be felt gradually. Meanwhile, demographic growth—driven by immigration and an aging population—continues to put pressure on the rental stock.

The result: a promising but complex market, where property managers must navigate affordability, regulation, and long-term planning challenges.

(Source: tendances-immo)

Rent Prices and Operating Costs

In 2025, rents continue to rise across Quebec’s rental market. According to the Tribunal administratif du logement (TAL), increases average around 5.9% for unheated units and can reach up to 8.5% in cases of major renovations or municipal tax hikes. In a context of high demand and limited supply, this trend supports property profitability—especially in large urban centers.

In Quebec City, the average rent for a one-bedroom apartment is now around $1,262 per month, with prices even higher in Montreal due to demographic pressure. While these increases present opportunities for landlords, they also come with real challenges: complying with legal frameworks, maintaining affordability to stay competitive, and meeting rising tenant expectations for quality.

At the same time, operating costs are climbing significantly: municipal taxes, insurance, maintenance, renovations, and energy costs are all weighing more heavily on property management. For managers, finding the right balance between profitability and long-term viability is becoming essential.

Transaction Volume and Market Dynamics

After a marked slowdown in 2022 and 2023, residential sales in Quebec picked up in 2024—and this trend continues in 2025. According to the APCIQ, he number of transactions jumped by 19% compared to the previous year, driven by falling interest rates and renewed buyer confidence.

In theory, this rebound in the homebuying market could slightly ease pressure on the rental market by encouraging some tenants to become homeowners. In practice, however, the effect remains limited: affordable housing supply is still lacking, and most tenants remain renters due to a lack of accessible options. For property managers, the rental demand remains strong—but adapting to new market realities and increasingly affordability-conscious tenants is crucial.

Rental Market and Vacancy Rates

In 2025, Quebec’s rental market remains tight despite a slight increase in the vacancy rate. According to CMHC, the rate rose from 1.5% in 2023 to 2.2% in 2024— still well below the historical average of 2.7%. This temporary uptick is mainly due to the completion of several new rental housing projects, which briefly expanded available supply.

That said, rental demand remains very strong, especially in major urban centers like Montreal and Quebec City. Rents continue to climb, driven by the ongoing scarcity of affordable housing.

Housing Starts and Residential Construction

In 2025, rental housing construction in Quebec is progressing at a steady pace, supported by government programs aimed at expanding affordable housing supply. Still, CMHC anticipates a general slowdown in housing starts by 2027—particularly in the condo segment—while the rental sector tries to maintain momentum.

In Montreal, rental housing starts are expected to rise for a second consecutive year, spurred by public incentives and lower financing costs. However, several obstacles continue to hinder progress: rising construction costs, infrastructure pressure, and project complexity are slowing the market’s ability to meet real demand. The result: even with ongoing projects, rental supply struggles to keep up with actual needs.

Implications for Property Managers

With a rental market that is both active and under pressure, property managers must juggle multiple realities: maximizing profitability, complying with regulations, and meeting tenant expectations. Rising rents and strong demand create opportunities—but also bring real challenges: affordability concerns, tighter regulations, and increased scrutiny on housing quality.

In this context, rigorous management is essential. Closely monitoring market trends, properly maintaining buildings, and strategically adjusting rents are all part of the daily routine. Equipping themselves with the right tools— like the property management solutions offered by Hopem, can also boost efficiency: rent tracking, maintenance, communication, performance analysis… all key elements that make a real difference on the ground.