Montreal’s Housing Market: Navigating a Shifting Landscape in 2026
Montreal’s real estate market is entering a phase of recalibration. While the rapid price increases of recent years are moderating, the market remains resilient, presenting both opportunities and challenges for buyers and sellers. This article dives into the key trends shaping the Montreal housing market in 2026, offering insights into price movements, inventory levels, and the factors influencing this dynamic environment.
Is Montreal’s Housing Market Slowing Down?
The start of 2026 has seen a continued slowdown in sales activity, building on the moderation observed in late 2025. Despite declining transaction volumes, property prices continue to show positive growth, indicating a shift towards more balanced market conditions rather than a correction. This divergence is particularly noticeable when compared to other Canadian provinces.
While overall sales are down, the market for multi-family properties (plexes) remains relatively robust, suggesting sustained demand for rental income properties. This contrasts with some slowdown in single-family homes and condos.
Are Montreal Home Prices Falling?
Despite the slowdown in sales, home prices in Montreal continue to rise across major property categories. However, the pace of growth is more moderate than in previous years, supported by limited supply. The dynamic suggests that supply constraints remain the dominant force in the market.
Plexes are experiencing more pronounced upward pressure than condos, reflecting continued strong interest in income-generating properties within a tight rental market.
Is the Montreal Condo Market Rebalancing?
The condo segment is showing clearer signs of normalization in Montreal. Inventory levels have increased more significantly in this category compared to single-family homes. This increase in listings is shifting some negotiating power towards buyers, though the market is far from a buyer’s market. It’s a gradual rebalancing, not an oversupply situation.
How Long Are Properties Staying on the Market?
Despite the decrease in sales, properties in Montreal aren’t remaining on the market for excessively long periods. Days on market remain below historical averages for most segments of the metropolitan area. This indicates that demand continues to effectively absorb well-priced properties. The slowdown is primarily due to a smaller pool of qualified or willing buyers, not a lack of interest.
Factors Shaping Montreal’s Market in 2026
Several structural forces point towards moderation rather than a significant decline. Mortgage rates have stabilized, reducing uncertainty, although they haven’t returned to the levels seen during the pandemic. The construction of rental properties is ongoing, which will gradually increase future supply and moderate vacancy rates. Affordability constraints and employment realities are limiting the momentum of first-time buyers. Existing properties remain more attractive than modern constructions due to high building costs.
Pro Tip: Focus on properties in median price ranges, particularly single-family homes, as these are attracting the strongest demand.
Is Montreal Heading for a Correction?
Montreal is experiencing a healthy adjustment phase rather than a marked downturn, reflecting stabilization after a period of acceleration. Indicators of financial distress remain contained, and supply in key segments remains below levels likely to trigger a price decline. The market is evolving towards a better balance, with lower sales, gradually increasing inventory (particularly in condos), and slowing price growth. However, structural undersupply and disciplined borrowing behavior continue to limit the risk of a downward price cycle.
Montreal Rental Market Overview
The average rent in Montreal was $1,913 in January. Average rent for a one-bedroom apartment was $1,710, while a two-bedroom unit averaged $2,216.
Rental Rates by City (Top 5)
| Rank | CITY | Average Total | 1 Bedroom | 2 Bedrooms | Yearly Variation |
|---|---|---|---|---|---|
| 1 | North Vancouver | $2,958 | $2,469 | $3,287 | −2.2 % |
| 2 | Vancouver | $2,650 | $2,362 | $3,279 | −4.8 % |
| 3 | Oakville | $2,502 | $2,216 | $2,576 | −19.3 % |
| 4 | Toronto | $2,504 | $2,183 | $2,801 | −8.6 % |
Average rental price by city and housing type
Source : Rentals.ca Network Data &. Urbanation Inc.
Frequently Asked Questions (FAQ) about the Montreal Real Estate Market Outlook for 2026
Why has Montreal avoided significant price declines compared to other cities?
Should Montreal property prices increase in 2026?
Which segment of the Montreal real estate market is under the most pressure?
How are buyers behaving in Montreal currently?
What defines the Montreal real estate market as we approach 2026?
Did you know? For every $100,000 of mortgage balance, a 0.25% change in the Canadian prime rate affects the monthly payment by $13.23.
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