In Montreal, the effect of the exodus contributes to raising the rate of available housing to 10%

MONTREAL, May 13, 2022 – The exodus of Montrealers is continuing at such a pace that the rental market is turning in favour of tenants, since the number of available units has risen sharply and now stands at 10%. This new reality should lead to an easing of rental prices, as many units have still not found tenants, unlike in previous years.

The vacancy rate on the island of Montreal rose from 1.6% in 2019, to 3.2% in 2020 and then to 3.7% in the survey conducted by CMHC in the fall of 2021. But in April 2022, barely 6 months later, the vacancy rate has now reached 4.67%, according to a survey of landlords, an increase that can be explained above all by the phenomenal number of households that are leaving Montreal. This is what was revealed in a survey conducted last April by CORPIQ on a sample of more than 11,000 dwellings on the Island of Montréal. This survey also confirms that the tenants who do not renew their leases are numerous, 5.85 % of the market, that they will be free at the end of the lease, mostly on July 1st. This brings the number of units available for rent to more than 10%, a figure that clearly shows that the market is turning in favour of tenants and that prices no longer have the strength of a year or two ago. The situation is specific to Montreal, because on the side of Quebec the vacancy rate remains rather low, at 2.11% (similar to last fall) and when one considers the availability, the potential dwellings for those who want to rent in Quebec represents 4.44%, that is to say twice less than in Montreal.

"The exodus of households from the island of Montreal is starting to worry real estate landlords who realize that the market is no longer the same. It is no longer only in the downtown area where rental periods are getting longer, the phenomenon is spreading throughout Montréal," says Benoit Ste-Marie, General manager of CORPIQ.

It should be noted that the market for small units (studios and two-and-a-half-bedrooms) has been strongly impacted by the pandemic, as people are looking for more space. In this market, the vacancy rate was already close to 7% last fall and the situation is even more difficult this spring, especially in downtown Montréal.

 

About CORPIQ

A non-profit organization bringing together 30,000 landlords and managers who own nearly 500,000 rental units and condos, CORPIQ is the largest association to offer services to landlords and to defend their interests, for over 40 years. It serves all regions from four offices with a total of 70 employees. Quebec landlords provide housing to 1.3 million renter households, seven out of ten of which own a duplex or triplex. Rental housing represents gross annual revenues of $10.5 billion, of which $1.6 billion is returned in municipal and school taxes. 

 

Information and interview requests:

Benoit Ste-Marie

Executive Director - Corporation des propriétaires immobiliers du Québec

Phone: 514-249-1691

Email : olbell@corpiq.com