Analysis by David Tardif, Broker (OACIQ) — 20+ years in the Montreal market, creator of the Tardif Index.

Why does housing remain vacant in Montreal in 2026?

The Quebec rental market is experiencing a scissor effect. On one hand, demand is slowing: tightening immigration policies are reducing the pool of international students and new residents. On the other hand, a wave of new construction, launched when housing starts were strong, is hitting the market. As a result, Montreal’s vacancy rate rose from approximately 2.1% in 2024 to nearly 2.9% in 2025 (CMHC), and there are roughly 25,000 vacant units on the island.

But these empty units are not the ones people are fighting for. The mismatch lies elsewhere: between the cost of new units (interest rates, materials) and what households can actually afford to pay.

Is it a housing crisis or an affordability crisis?

The short answer: an affordability crisis. We do not lack structures in absolute terms — we lack housing adapted to budgets. The proof is in the distribution of vacancy by price: according to rental market data (CMHC), barely 1.6% of units offered under $1,300 are vacant, compared to 5.9% of those above $1,900. In other words, what is affordable is rented almost instantly; what is expensive remains empty.

The market is blocked: tenants in older affordable units cannot move into new builds due to a lack of means. The natural rotation of the housing stock is stalling.

What the Tardif Index reveals

The rental paradox is only one side of the coin. On the resale side, the same pressure — interest rates, affordability, slowing demand — is shifting the balance between buyers and sellers. This is exactly what the Tardif Index, our proprietary Greater Montreal indicator (public methodology), measures every week on a scale of 0 (buyer’s market) to 100 (seller’s market).

In other words: while the rental market is loosening, the resale market follows its own logic. Confusing the two leads to poor decisions — hence the utility of a dedicated indicator, updated weekly, rather than contradictory headlines.

What portion of their income do households spend on housing?

The recognized standard is that a household should spend no more than 30% of its gross income on housing. In Montreal, this threshold is significantly exceeded for many households: modest-income families, single people, and especially single-parent families and students, for whom rent eats up a disproportionate share of the budget — to the point of cutting back on essential needs.

Why are seniors particularly affected?

Seniors are vulnerable to an affordability crisis: with fixed incomes (annuities, pensions), they struggle to absorb rent increases. Furthermore, the closure of small private seniors’ residences (RPA) sends tenants back into a regular market that is often poorly adapted to loss of autonomy (lack of elevators, ramps). Seniors occupy a significant portion of social housing waiting lists in Montreal.

What can a landlord do to rent better in 2026?

A landlord has concrete levers to stabilize income without sacrificing the value of their building:

• Know the TAL rent-setting rules. For leases from April 2, 2026, to April 1^st, 2027, the Tribunal administratif du logement’s basic percentage is set at 3.1% (new three-year inflation average method). Predictable increases help retain good tenants.
• Calculate the true cost of vacancy. Leaving a unit empty for two months to gain $100/month destroys annual profitability. Vacancy often costs more than a fair rent.
• Use “off-lease” incentives. To attract a good tenant without changing the face value of the lease, offer a one-time benefit: first month free, Wi-Fi included, moving costs.
• Seek out renovation subsidies (see the sidebar).

What financial assistance is available for low- and middle-income tenants?

• Shelter Allowance Program (Revenu Québec): assistance of up to $170 per month ($100, $150, or $170 tiers) for eligible households spending too much of their income on rent — particularly people aged 50 and over, couples where one member is 50 or over, and low-income households with a dependent child.
• Rent Supplement Program (PSL): allows an eligible tenant to pay only about 25% of their income in rent, with the program (SHQ, with the OMHM) paying the difference to the landlord.
• Home Ownership Assistance: to stabilize costs in the long term, some households explore municipal home-buying support programs. Check eligibility and current amounts with the City of Montreal.

How can students find housing in Montreal without breaking the bank?

• Target UTILE projects (Unité de travail pour l’implantation de logement étudiant), which develops buildings reserved for students. Applications often open in the spring for July 1^st — prepare your proof of enrollment in advance.
• Strategic roommates: dividing a large 5½ or 6½ is significantly cheaper per square foot than a solo studio and helps bring the effort rate below 30%.
• Watch out for hidden extras: check if heating, hot water, and electricity are included. In a poorly insulated unit, a winter heating bill can significantly increase the monthly budget.