Montreal’s luxury rental market is growing amidst slowdowns in other urban Canadian cities. Despite higher borrowing costs and economic challenges, demand for luxury rentals has soared, reflecting Montreal’s appeal to local tenants and global investors. A report from Statistics Canada shows that the average asking rents in Montreal grew from $1,130 in 2019 to $1,930 in Q1 2025. This growth reflects the strength of tenant demand, while comparable markets in Toronto and Vancouver have struggled.
One strength of Montreal’s market is its affordability compared to Toronto and Vancouver. The average rent for luxury rentals sits well below those two cities, which helps renters see the value in Montreal. This affordability has helped boost supply and demand, with developers maintaining strong leasing activity and steady absorption of renters eager to take advantage of the lower prices and recent improvements in rental options. Montreal offers tenants a balance that other markets can’t: upscale living with access to cultural and professional opportunities, but without the added cost burden of renting in Toronto or Vancouver.
Local real estate developer Sean Erez, who actively manages several multi-residential luxury properties in Montreal, has seen these changes firsthand. “Montreal’s luxury rental market is resilient. Tenants in the city are motivated yet discerning, especially with affordability being stable compared to other big cities,” he says. Erez has seen growth in demand for luxury apartments and multi-residential properties, appealing to both individuals and families. He has seen tenants prioritize lifestyle-driven decisions, wanting homes that reflect comfort and quality, but also flexibility as their professional or personal lives change.
Population growth has also increased demand. Between July 1, 2023 and July 1, 2024, almost 132,000 people moved to Montreal, bringing the total population to over 4.5 million. This growth has put pressure on all rental segments, from entry-level units to high-end condos and estates. The appetite for luxury rentals, however, has been especially active in recent quarters, emphasizing Montreal’s ability to attract new residents who want quality housing in central locations. Many of these newcomers choose to rent before committing to ownership, while others see long-term renting as a practical and flexible lifestyle choice.
The city’s variety of rental housing types also contributes to the resilience of the luxury market. While detached single-family homes converted to rentals tend to attract the most interest, luxury condos and townhouses are becoming popular, especially for downsizers and young professionals who want modern amenities and a vibrant city lifestyle. These facilities typically include concierge services, fitness areas, and eco-friendly features, which are now considered essentials instead of luxuries.
“I’ve noticed a big demand for multi-residential luxury options, including duplexes and triplexes, where families and individuals see the most flexibility and long-term value,” says Erez. This progress reflects a bigger desire for city living that combines comfort and practicality.
Another factor that has led to increased renter confidence is development quality. Luxury tenants in Montreal are particularly attentive about design, sustainability, and lifestyle offerings that improve the long-term appeal of their homes. Developers who can anticipate and meet these expectations are more likely to stay relevant in a competitive market. Properties that focus on energy efficiency, modern architecture, and thoughtfully designed communal spaces are often leased the quickest, proving that design can directly impact demand.
“For developers like myself, it’s crucial to address market gaps with a focus on quality design and tenant satisfaction. Montreal residents value thoughtful city living, and the luxury market rewards that ethos,” says Erez.
While luxury rental demand in Toronto and Vancouver has softened due to economic challenges, Montreal has distinguished itself as a city where opportunity still exists. The city’s international profile is also growing, with more global renters taking note of the relative value it offers compared to other North American markets.
