CMHC (Canada Mortgage and Housing Corporation) has released its residential market outlook for 2025. While the report covers the entire housing sector, it contains several key takeaways specifically for landlords. Whether you’re in Montreal, Quebec City, or Gatineau, here’s what you need to know—and how to prepare.
1. Rental Housing Remains the Star of New Construction
In 2025, rental units will continue to drive residential construction. In other words, developers have rental on their minds (almost exclusively!). Condo starts are expected to remain low due to high construction costs and limited buyer interest.
What this means for landlords: expect more competition. Thousands of new units will hit the market, so it’s crucial to make sure your current properties are well-maintained, strategically positioned, and competitive.
2. Resale Market on the Rebound
Following a recovery in 2024, the resale housing market is expected to keep gaining momentum in 2025, with prices continuing to rise. The ongoing scarcity of properties is fueling this upward pressure. As a result, fewer people will be able to buy, meaning many will remain renters longer—sometimes out of necessity.
Good news for landlords: rental demand should remain strong, though some first-time buyers may take advantage of lower interest rates and the return of 30-year mortgages to enter the ownership market.
3. Signs of a Rental Market Rebalancing
This may be the most important point for landlords: the rental market started to cool in 2024, and that trend could continue. What does that mean? Slightly higher vacancy rates, slower rent increases—in short, a more competitive landscape.
Two factors could reduce rental demand:
-
A projected decrease in international migration
-
Some tenants leaving the rental market for homeownership
However, not all regions will feel the effects equally. In cities with strong population growth like Montreal and Gatineau, the impact will be smaller. In Quebec City, where the market is already more balanced, landlords will have less wiggle room.
4. An Uncertain Economic Context
Diversified job markets in major metro areas offer stability. Still, global economic uncertainty could affect consumer confidence, slowing down decisions to move or invest.
In Summary
For landlords, 2025 is shaping up to be a year worth watching closely. Expect more rental inventory, increased competition, and potentially a slightly softer demand. The key?
-
Focus on maintenance, quality, and added value
-
Stay flexible and tuned into local trends
-
Don’t overlook the impact of migration and economic policies on demand
Stay the course, stay informed… and adapt your strategy as needed!
Want to learn more? Check out CMHC’s full 2025 market forecast.
Read also :
