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Market Report

Montreal Multifamily Market Report

1Q 2023

Migration-Fueled Vacancy Crunch to Reverse Course as New Supply Rises and Economy Slows

Demand soared as resident growth bounced back. Following a sharp decline in the metro’s population growth during 2021, which was caused by border restrictions hampering immigration and in-person activities, in-migration into Montreal resumed to normal levels last year. The city welcomed a net inflow of 63,000 permanent and temporary residents in 2022, a nearly 700 per cent increase from the prior year. Additionally, high home prices and elevated borrowing costs triggered a 22 per cent decrease in the metro’s residential property sales last year, which redirected housing needs to the multifamily sector. This population tailwind and demand spillover from the single-family market fueled a recovery in leasing activity, which pushed vacancy down by 100 basis points, even as the level of completions reached a historic high in 2022. 
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