Montreal Multifamily Figures 2024

–       Total number of transactions are up 47% year-over-year (YoY), but down 15% from the 2021 high, when interest rates were at historic lows.

–       45% of transactions occurred in Q2, primarily in buildings with 10 units or less as mainly “Mom and Pop” owners liquidated their assets following capital gains tax reforms.

–       The easing of interest rates in 2024 is expected to boost investor demand, particularly among institutional investors who maintained a “wait and see” approach during the Bank of Canada’s quantitative tightening policy.

–       Despite an anticipated increase in residential permits in 2024, the current emphasis on one-bedroom units limits housing options for larger households, driving many first-time homebuyers to continue renting.

–       Rental growth has increased to 6.4% YoY. This represents a deceleration from the 2023 value of 7.1%, attributed to the influx of purpose-built rentals entering the market. The Tribunal Administratif du Logement (TAL) is recommending a historic 5.9% increase for in-place rents. This will help shift rental growth away from the 2024 deceleration trend, as in-place rents exhibit significantly lower annual increases compared to market.