Q: What are the key changes in the Montreal rental market?
A: Significant changes are occurring in the Montreal rental market. Notably, the vacancy rate on the Island of Montreal fell from 3.7% in 2021 to 2.3% in 2022, primarily due to an increase in international migration and a slower transition to homeownership.
Q: How have these changes affected the suburbs?
A: These dynamics have boosted rental demand in the suburbs. Even with the addition of thousands of new apartments, the suburbs’ vacancy rate has stayed around 1%.
Q: What trends have emerged concerning 2-bedroom apartments?
A: A noteworthy trend is the substantial 28% gap between the average rent for 2-bedroom apartments that turned over to a new tenant ($1,235) and those that did not turn over ($963). Additionally, the average rent change for these units from 2021 to 2022 marked the largest increase in 20 years at 5.4%.
Q: What was the rent increase for units that turned over versus those that didn’t?
A: The increase was more substantial for units that turned over, with a whopping 14.5% increase, compared to a 3.5% increase for units that did not turn over.
Q: How has the supply and demand for rental condominiums changed?
A: The supply of rental condominiums rose sharply in 2022. However, due to the same factors impacting the purpose-built rental market, demand also increased, resulting in a stable vacancy rate of 2%.
Q: Are there specific geographic areas in Montreal CMA where these trends are more pronounced?
A: Yes, areas like Downtown Montreal/Île-des-Soeurs have seen a significant reduction in vacancy rates from 10.2% in 2020 to 4.3% in 2022. However, in areas like Côte-des-Neiges/Mont-Royal/Outremont, while the vacancy rate decreased, it still stood at 3.3% in 2022. On the other hand, the suburbs saw a marginal increase in the vacancy rate from 1.1% in 2021 to 1.3% in 2022.
Q: How can Votre Equipe Immobilier assist commercial real estate investors in navigating these market changes?
A: At Votre Equipe Immobilier, we provide strategic insights to help commercial real estate investors understand these market trends and adjust their investment strategies accordingly. As the rental market evolves, we stand ready to help you navigate these complexities and optimize your investments. Reach out to us today, and let’s explore the promising opportunities in this vibrant market together.
*According to the CMHC Rental Market Report
Edition of January 2023