What is the Rent Increase for 2025 in Montreal?

Montreal has always had a reputation as one of the more affordable big cities in Canada. Students, newcomers, and professionals often choose it over Toronto or Vancouver because the housing seems reasonable. But things are different now that we're in 2025, with some predictions suggesting a rent increase of several cents. Rents have been going up consistently, and a lot of people are asking the same thing: What will the rent go up to in Montreal in 2025?

The answer isn’t simple, especially when considering government policies that affect housing. There are the official numbers set by Quebec’s rental tribunal (the Tribunal administratif du logement, or TAL). Then there’s the reality on the ground — what tenants are actually paying and what landlords are asking, which reflects the actual costs. Let’s go through both, step by step, and unpack what this means for you, whether you’re signing a lease or managing a rental.

TAL Guidelines: The Official Rent Increase Quebec 2025

Every year, TAL gives landlords advice on how much they can raise rents. These rules take into account inflation, energy costs, taxes, and the cost of keeping up with structural repairs, and they also include a rent adjustment mechanism. They are designed to find a middle ground between giving landlords flexibility to cover increasing costs and keeping tenants from paying too much.

For 2025, here’s what TAL has announced: landlords must provide proper notice of any intended rent increases.

• 5.9% increase for units without heating included.

• 5.5% increase for apartments with electric heating.

• 5.0% increase for apartments heated with natural gas.

• 4.1% increase for units with oil heating.

This is historic, as the increase was calculated to reflect market conditions. According to TAL records, it’s the highest recommended rent increase in more than 30 years. Back in 2024, the average guideline was about 4%. Now, tenants could face nearly 6% increases depending on their lease conditions.

To put this into perspective, Various factors, including rising expenses, will determine how much rent could increase.

• If your monthly rent was $1,200 in 2024 and heating wasn’t included, a 5.9% monthly rent increase in Montreal in 2025 would bring your payment to about $1,270.

• If your rent was $2,000 with heating included, at a 5% increase, it would rise to $2,100.

Those extra dollars may not sound dramatic on their own, but over a year, they add up quickly.

What Happens If Tenants Refuse?

In Quebec, tenants don’t have to automatically accept an increase. You can deny a notification if you think it is unfair. When that happens, landlords can take the case to TAL, where both parties can make their cases.

This procedure is important because the average rent rise in Montreal in 2025 could be different if renters fight back. Landlords can use TAL's calculation tool to explain why they need to raise rents more if their property taxes, insurance premiums, or substantial improvements have gone up. TAL granted increases in some cases in 2024 that averaged 6.9%. This was the highest rate in more than 15 years.

The Market Picture: Montreal Rent Increase 2025 in Numbers

While TAL sets guidelines, the market tells its own story, influenced by the level of service from landlords. According to Urbanation’s Q2-2025 report, the average asking rent in Montreal reached $1,991 per month, influenced by municipal and school taxes. That’s a 3.9% increase compared to the year before.

Some other key figures:

• Studios averaged $1,488/month.

• One-bedrooms were about $1,748/month.

• Two-bedrooms hit $2,295/month.

• Three-bedrooms climbed to $2,843/month.

These figures demonstrate that the average rent rise in Montreal in 2025 isn't the same across the board. Smaller apartments usually cost more per square foot, whereas bigger apartments may cost more overall but less per square foot.

The long-term trend is what really stands out: since 2019, the rent for a typical two-bedroom apartment in Montreal has gone up 71%, from roughly $1,130 to $1,930. That isn't simply inflation; it's a big change in the city's property market.

Why Are Rents Rising So Quickly?

Let’s look at the bigger picture behind the rent increase in Quebec in 2025.

1. Low vacancy rates
   With a vacancy rate of about 2%, there is a lot of competition for apartments in Montreal. Landlords can raise prices without losing renters when there aren't many of them.

2. Population growth
   Montreal continues to attract newcomers — students, immigrants, and professionals — all of whom need housing. Demand is outpacing the number of new apartments being built.

3. Construction slowdown
   While about 24,000 housing units are under construction, it’s not enough to ease the pressure. Developers also face high building costs, which slow down supply.

4. Rising landlord expenses
   Property taxes, energy bills, and insurance premiums have risen sharply. Landlords argue that the Montreal rent increase in 2025 is simply a way to catch up with those costs.

5. Inflation
   Although inflation has slowed from its 2022–2023 peaks, the cost of materials, labor, and maintenance remains high.

The Human Impact: Tenants Feeling the Squeeze

Numbers are one thing, but how does the monthly rent increase in Montreal in 2025 play out in real life?

• Students renting near McGill or Concordia may see studios and one-bedrooms become less accessible, pushing them into shared apartments.

• Families are being priced out of central areas like Plateau or Ville-Marie and looking toward more affordable districts like Verdun, LaSalle, or Villeray.

• Newcomers arriving in Montreal may face sticker shock compared to what they read online about the city’s “affordable” reputation.

Some households are now considering alternatives like moving to Longueuil or Laval, where rents are still lower, or even switching to homeownership as interest rates begin to ease.

The Landlord’s Perspective

The rent increase is good for landlords, especially considering the increase of 5.9% forecasted for 2025. Montreal 2025 is a welcome break after years of escalating costs. The Corporation des Propriétaires Immobiliers du Québec says that a lot of owners think they've been paying too much without being able to raise rents.

But it’s a balancing act. A sharp increase might drive good tenants away, especially when turnover units can already command higher market rents. The smart approach many landlords are taking is:

• Keeping increases close to TAL’s guidelines.

• Providing transparency by showing tenants the TAL calculation tool.

• Renovating strategically to justify higher rents in the long term.

Comparing Montreal to Other Canadian Cities

It’s worth noting that despite the steep increases, Montreal is still cheaper than other large Canadian markets:

• In Ottawa-Gatineau, the average rent per square foot is $2.83.

• In Greater Toronto-Hamilton, it’s $3.39.

• Montreal comes in at $2.64 per square foot, about 22% lower than Toronto.

That affordability gap explains why demand in Montreal remains so strong. For people priced out of Toronto or Vancouver, Montreal still looks attractive — even if locals feel the pinch.

Tenants’ Rights: What You Can Do

If you’re a tenant facing an increase this year, here are a few things to keep in mind:

• You can refuse: If the increase seems unreasonable, you’re allowed to decline it. The landlord then has to apply to TAL.

• Check the TAL calculator: This online tool helps you see if your landlord’s numbers are justified.

• Negotiate: Some landlords may accept a smaller increase in exchange for a longer lease or reliable payment.

• Don't let your landlord raise your rent too much. If they say the renovations are the reason for the big rise, ask for receipts and proof.

What the Future Looks Like

So, what is the rent increase for 2025 in Montreal? The official answer is about 5.9% for most unheated apartments, translating to a cent increase that varies by unit. But in practice, the average rent increase in Montreal in 2025 looks closer to 3.9%, with big differences depending on your building, neighbourhood, and whether you’re signing a new lease.

The broader reality is that Montreal is no longer the budget-friendly city it once was. As rents climb, more tenants are being forced to adapt: moving to new areas, splitting apartments, or stepping into homeownership, while some may even file complaints regarding unfair increases. Meanwhile, landlords are finally able to offset rising costs — but at the risk of pushing tenants away.

Conclusion

Montreal is at a turning point. The Quebec 2025 rent increase is the biggest in decades. This is because of both economic constraints, including rising electricity costs, and the city's lack of housing. TAL sets statutory limits, through regulation respecting rent increase, but the market generally moves faster, especially when tenants leave and prices go back up.

For tenants, the most important things are to know your rights, plan your money carefully, and look into your possibilities. Landlords need to find a balance between being fair and making money.

The monthly rent increase in Montreal in 2025 is more than simply a percentage; it's a reflection of where the housing market in Montreal is going. And for anyone who lives here, that's something you can't ignore.