CMHC: Annual Overview of the Quebec Rental Market 2023

Every year, the Canada Mortgage and Housing Corporation (CMHC) conducts a survey on rental housing in urban centers with populations of 10,000 or more to assess the rental market. In 2023, the rental market in the Montreal region and across Quebec was characterized by significant variations in vacancy rates and rents. Data unsurprisingly reveal a downward trend in vacancy rates in Montreal and Quebec City, while Trois-Rivières experienced a marked decrease. Saguenay recorded a notable increase in vacancy rates, attributable to an increase in construction starts.  Meanwhile, average rents increased across all regions, with more pronounced increases in certain cities such as Sherbrooke and Quebec City. This dynamic reflects the complexity of the Quebec rental market and its implications for tenants and landlords.

RENTAL MARKET INDICATORS

In the Montreal region in 2023, the vacancy rate stood at 2% before experiencing a decrease to 1.5% as of October 2023. As for the Quebec City region, the vacancy rate also follows a downward trajectory, dropping from 1.5% to 0.9%. In the Trois-Rivières area, the most significant variations in vacancy rates are observed, with a decrease of 55%, representing the transition from 0.9% to 0.4%.

Regarding Saguenay and Trois-Rivières, an increase is observed in both regions. In October 2022, the vacancy rate was 0.9%, reaching 1.3% in October 2023. Subsequently, Gatineau closely followed with a 38% increase in the vacancy rate, reaching 1.1% in October 2023. For Drummondville, a 25% increase in the vacancy rate was recorded over the same period.

Regarding the average rents for two-bedroom apartments located in newly constructed or existing buildings, an average increase of 8% is observed in the regions examined. Sherbrooke stands out with the highest increase, reaching 9%. The average rent in October 2022 was $809, rising to $901 in October 2023. Saguenay and Trois-Rivières both saw a 9% increase, bringing their respective average rents to $775 and $778 in October 2023. For Drummondville, rents increased by 8%, while Quebec City and Montreal showed a 7% increase. In October 2023, the average rent stood at $1,096 for Montreal and $1,040 for Quebec City.