The Resilient Montreal Real Estate Market: Investment Opportunities in 2026

If you've been watching Montreal's real estate scene, you know it's been quite a ride. As we head into 2026, this city is proving it's got staying power. While Toronto and Vancouver grab headlines with their sky-high prices, Montreal quietly offers something increasingly rare in Canadian real estate: actual value combined with genuine growth potential.

For investors trying to decide where to put their money, Montreal is worth a hard look. Let's dig into what makes this market tick and why 2026 might just be your year to make a move.

The Story So Far: Where Montreal Stands

Well, 2025 certainly was the year for real estate in Montreal. Record after record was hit, and the market just didn't seem to want to slow down. But here's the thing: that kind of explosive growth just can't last, and honestly, probably shouldn't.

As we head into 2026, the market is finding its footing. National forecasts are calling for home sales to bounce back by 7.7%, hitting over 509,000 units-the best since 2021. Montreal? It's expected to do even better than the national average. According to the Canadian Real Estate Association, the average home price across Canada will climb by 3.2% to about $698,622, and Montreal should match or beat those numbers.

 

What really sets Montreal apart, of course, is its affordability compared with our friends in Toronto and Vancouver. That price gap isn't just nice to have-it's pulling people here. Young professionals, growing families, even investors from other provinces are discovering that Montreal offers the whole package without the financial stress of Canada's priciest markets.

And here's something interesting: while Ontario and British Columbia are dealing with too much supply in some areas, Montreal's market is more balanced. That's good news if you're thinking about buying.

What's Happening with Prices?

Let's talk numbers: through 2025, single-family homes in Montreal were on fire, with median prices pushing past $797,500. That's a solid 10% jump year-over-year. People wanted space, yards, and privacy-and they were willing to pay for it.

Now, looking toward 2026, the expectation is different. We're likely to see price growth in the 2-3% range. Before you think that sounds disappointing, consider this: that's actually healthy. Markets that grow too fast inevitably correct, often painfully. Steady, sustainable growth? That's what builds long-term wealth.

Condos also held their own in 2025, with median prices around $420,000. They continue to attract first-time buyers who want to live in great neighborhoods without breaking the bank, downsizers looking to simplify their lives, and investors hunting for entry-level opportunities.

But here's where things get really interesting for investors: Montreal's plexes. If you're not from here, plexes might be a new concept-they're duplexes, triplexes, and quadruplexes that are basically the backbone of Montreal's rental market. These properties are special because you can live in one unit and rent out the others. It's a way to be both a homeowner and a landlord, and in a strong rental market like Montreal's, that's a powerful combination.

The luxury market, meaning properties over $2.5 million, had more than double the sales in 2025 compared to 2024. We're talking Westmount, Outremont, Town of Mount Royal-the places where money goes to live well. That momentum will likely continue in 2026, just at a more measured pace.

Why Rental Properties Make Sense

Here's where Montreal really shines for investors: the rental market is strong, and it's getting smarter.

Between 2023 and 2025, rents leaped upwards by more than 10%. That's huge. It happened because property prices and interest rates made buying tough for a lot of people, so they stayed in or moved into rentals. Young professionals starting careers, newcomers to the city, families who got priced out of buying—they all needed somewhere to live.

In 2026, the rental market is finding better balance. Immigration numbers are moderating a bit, and new rental buildings that started going up in 2024-2025 are finally delivering units. That means vacancy rates, which have been super tight, should ease up a little.

Does that mean rental investing is dead? Not even close. It means the market is maturing. Vacancy rates in Montreal were at about 2.1% overall in 2024-that's really low. Even newer buildings-ones built after 2015-had vacancy rates of only around 3.8%. There's still strong demand; it's just not the feeding frenzy of recent years.

What this means for you as an investor is that quality matters more now. A well-maintained property in a great location with good transit access? That'll still command premium rent and stay occupied. Multi-family properties and plexes remain particularly attractive because they give you multiple income streams and spread your tenant risk.

The math is getting more interesting too: while your property price growth may be slowing down, rental income is still quite strong, which means your cash-on-cash return actually improves. That's worth paying attention to.

The Money Stuff: Interest Rates and Economics

Let's talk about the elephant in the room: interest rates.

Through 2025, the Bank of Canada shaved 2.25 percentage points off its policy rate in ten months. That was huge. It made borrowing cheaper for buyers and gave investors better refinancing options. Entering 2026, most pundits believe that rates will remain largely stable. We may see minor cuts, but the big moves are probably behind us.

Here's why that matters: we won't see the rates dramatically drop and unleash a wave of new buyers, but the current rate environment is far more manageable than what we dealt with in 2022-2024. Fixed mortgage rates have fallen substantially from their peaks. For buyers, that helps with affordability. For investors, it helps with cash flow.

But 2026 brings with it one big challenge: mortgage renewals. A whole lot of Canadians locked in five-year fixed rates back in 2020-2021 when those rates were super low. Those are coming due, and when they renew, those homeowners are going to see much higher payments. Some may have to sell. Others may delay buying their next property.

What does that mean for you? Possibly more inventory hitting the market, which could create opportunities if you're ready to buy. It also means competition may ease up a bit.

First, the job market should continue to improve through 2026, peaking at around 7.1% sometime toward the end of 2025 before coming back down. That is positive, as people with jobs can afford rent and mortgages.

Trade issues are a wild card. If tariffs get slapped on US building materials, construction costs could rise. That limits new supply-good for existing property values-but also makes development more expensive-challenging for new construction.

The Montreal commercial real estate picture contracted about 25% in the first half of 2025, but here is the thing: multifamily residential investment actually went up 2%. That tells you where the smart money sees opportunity.

Moves That Make Sense in 2026

So, you're considering investing in Montreal real estate in 2026. Here's all you need to know.

Location is not everything; it's the only thing. Properties near transit, jobs, shops, and restaurants will always command better prices and attract better tenants. Plateau-Mont-Royal and Mile End are established favorites. Ville-Marie stays strong. But if you're looking for value with upside potential, check out Verdun, Saint-Henri, and Rosemont. These neighborhoods are coming up, and one can still find deals.

First, think about the kind of property that fits your goals. Single-family homes appeal to end-users and will appreciate in value, but rental yields are usually lower. Condos are easier to manage and have lower entry costs, but you are in competition with a lot of other similar units. Plexes hit a sweet spot-you can live in one unit, rent the others, and you're diversifying your tenant risk across multiple units.

Timing is, in fact, on your side right now. The craziness of mid-2025 has worn off the market. Properties are spending reasonable time on the market. That means you can actually do your due diligence without feeling rushed. You won't have to get into those bidding wars on every listing that comes up. That being said, good properties in good locations still move, so have your financing lined up and know what you're looking for.

Do your homework-serious. Montreal's got some beautiful old buildings with tons of character. They're also old buildings that might have foundation issues, structural problems, or surprise maintenance needs. Before you buy anything, make sure it gets properly inspected. And by properly inspected, I mean really inspected-not just a quick walk-through.

That is where the right expertise plays its role. Yan Ohayon built his business at Simalis specifically around helping people navigate these complex situations. He specializes in properties that have engineering challenges, foundation issues, or structural concerns that scare off other buyers. That specialized knowledge helps investors see opportunity where others see risk.

Properties under Simalis management, like 300 Rielle in Verdun, 2090 Beaconsfield in Côte-des-Neiges, and 1375 La Fontaine in Ville-Marie, are strategic positions across different Montreal neighbourhoods. Each offers that balance of urban convenience and residential quality that keeps tenants happy and units occupied.

Know the rules: Montreal has a number of regulations concerning rental properties-particularly short-term rentals. Tenant protection laws are in place, and you should know what they are. Factor compliance costs into your projections upfront. The last thing you want is to buy an investment property and then find out you can't operate it the way you had planned.