In a recent report from the Montreal Gazette, researchers have found that rent prices in the City of Montreal have skyrocketed over the last ten years, jumping nearly 70 per cent compared to what they were in 2016. Montreal is a city known for its affordable rental market, but a litany of factors has inflated prices in the last 10 years, and Montrealer’s are feeling it. In 2006, the average price for a rental property in Montreal was just $617 per month. That number grew to $761 in 2016, and now, in 2026 the average price has skyrocketed to $1,291 per month; an increase of 70 per cent.
Montreal no longer a great deal
Since the 1970s, Montreal has had a reputation for being an affordable city for renters. Since Montreal gave up its position as the economic hub, rent prices remained low. With Toronto taking the mantle as the business hub of Canada, prices in Toronto skyrocketed while Montreal’s stayed low. According to a report from David Wachsmuth, the Canada research chair in urban governance at McGill University, Montreal’s rent increase has seriously closed the gap between it and other major Canadian cities like Vancouver and Toronto (two cities known for their expensive rental markets).
“It is important context that this catch-up is happening throughout the province as well. If you look at the regions in Canada where rents are rising the fastest, they’re all in Quebec,”
-David Wachsmuth
Why has Montreal historically been affordable?
According to Wachsmuth, there are several reasons that Montreal has historically been cheaper than other major Canadian cities. One reason is Montreal’s urban design. Montreal is full of low-rise, rental apartments, whereas Toronto and Vancouver rely on single-family detached homes and high-rise condos. Montreal has rental housing everywhere. Between the sheer quantity of rental properties available and Montreal’s history of art and culture, Montreal has always been in a position to offer lower prices than other major metropolitan areas.
What factors are hurting rental prices?
Wachsmuth gave a slew of reasons as to why rental prices have increased so drastically. One is COVID-19 and the population change Montreal experienced. The years after COVID-19 had major population growth alongside low housing vacancy rates, causing a serious spike in demand. Francis Cortellino, a housing economist for the CMHC broke down the change in supply and demand.
“The demand was higher than the supply. So you have a lot of tenants looking for the same apartments,”
-Francis Cortellino
Landlords and property owners, meanwhile, argue they are facing growing financial pressures of their own due to higher interest rates, insurance costs, taxes and maintenance expenses. Some landlords interviewed online and in local reporting said they rely heavily on TAL guidelines when determining increases, while others argued larger hikes have become necessary simply to cover rising operating costs tied to mortgages and utilities. Quebec’s new formula also allows additional adjustments tied to certain renovation expenses, which tenant advocates fear could incentivize cosmetic upgrades designed primarily to justify higher rents.
There is also the impact of the rent increase recommendations by Quebec’s Tribunal administratif du logement, (TAL), suggesting landlords raise rents by an average of 3.1 per cent for leases renewing between April 2026 and April 2027. While lower than the controversial 5.9 per cent recommendation issued in 2025, tenant groups argue the increases remain historically high at a time when many Montrealer’s are already dedicating huge portions of their income toward housing costs. The TAL emphasized the recommendation is not a mandatory cap, meaning landlords can still attempt to seek larger increases depending on renovation costs, taxes and other expenses tied to specific properties.
Montreal still ahead of other cities
Despite the growing frustration, Montreal remains more affordable than Toronto or Vancouver by many national measures. Data from WealthNorth and Apartments.com suggest average two-bedroom rents in Montreal remain roughly 40 per cent lower than comparable units in Toronto. Still, housing experts warn affordability comparisons offer little comfort to local tenants facing rapidly rising costs relative to their own salaries. The pressure appears particularly severe in centrally located neighbourhoods, including Plateau-Mont-Royal, Ville-Marie and parts of the Sud-Ouest, where competition for apartments remains intense despite slightly improved vacancy rates.
What’s next?
As lease renewal season comes along in July, many Montreal renters now face difficult negotiations with landlords while navigating increasingly complex housing rules and rising costs. Under Quebec law, tenants can refuse proposed rent increases and ask the TAL to formally determine a fair rent adjustment, though some renters say they fear retaliation or difficulty securing housing in the future if disputes escalate. With affordability concerns continuing to dominate political debate across the province, the battle over rents is likely to remain one of Montreal’s most contentious social and economic issues throughout the coming year.