Montreal Housing Market Slows as Rising Unemployment and Lower Immigration Cool Buyer Demand

The Montreal-area housing market experienced a notable slowdown in May, with home sales dropping 6.8% on a year-over-year basis. According to the latest data from the Quebec Professional Association of Real Estate Brokers (QPAREB), a total of 4,623 residential properties changed hands across the Montreal census metropolitan area last month, down from the 4,962 transactions recorded in May 2025.

While every property category saw a dip in activity, the real estate board noted that overall sales numbers remained aligned with the region’s historical 10-year average.

Industry experts attribute the cooling market to shifting economic conditions that have been building over the last few months. Charles Brant, the board’s director of market analysis, highlighted a weakening labor market and changing demographic trends as the primary drivers behind the slowdown.

Specifically, Montreal’s unemployment rate has climbed sharply since the beginning of the year, jumping from 6.3% in January to 7.7% in April marking its highest non-pandemic level since the summer of 2016.

“This likely contributed to greater caution among buyers,” Brant stated, adding that stricter immigration policies have also curbed regional population growth, further dampening housing demand.

Hélène Bégin, senior economist for the board, agreed that a mix of economic strain and high housing costs is impacting the market. “In this context, it is not surprising that the Montreal CMA resale market is showing some signs of slowing, especially since affordability remains an additional challenge,” Bégin said.

Interestingly, the drop in sales comes at a time when buyers actually have more options. New listings ticked up 1.5% year-over-year to 7,564, while total housing inventory surged 13.7% to 21,073 available properties. This marks the tenth consecutive month of rising supply in Montreal, pushing active listings slightly above the 10-year average.

The inventory spike is particularly noticeable in the condo market. “The inventory of available condominiums is rising at a particularly rapid pace, especially on the Island of Montreal, as well as on both the North and South Shores, thereby easing pressure on prices,” Bégin noted.

Despite the broader slowdown and growing inventory, home prices managed to hold their ground and continue their upward trend across all categories: Plexes (2 to 5 units): Led the market with a 6.1% year-over-year increase, pushing the median price to $875,000. Single-Family Homes: The median price rose 3.2% compared to last May, reaching $645,000. Condominiums: Prices remained relatively flat but edged up 0.6% to a median of $430,000.

The data points to a market in transition, where growing inventory and economic headwinds are beginning to balance out the aggressive price growth seen in recent years.