While the housing market cooled in many provinces across Canada in 2025, Quebec’s real estate market heated up, reaching nearly peak pandemic levels, according to the Quebec Professional Association of Real Estate Brokers (APCIQ). “There is a confidence in the market and confidence that the prices will go up and up,” said APCIQ’s director of market analysis, Charles Brant. In the Montreal metropolitan area, the median price of a single-family home has risen by 67 per cent in the last five years, a sharp increase driven by several factors including lower interest rates, 30-year-mortgages, but above all, a lack of supply, Brant added. In the last quarter of 2025, the association reported the median price of a single-family home in the Montreal metropolitan area was $630,000, up 7 per cent from last year. Condominiums were $425,000 dollars, up 1 per cent, and the median price of a multiplex surged 8 per cent to $848,000. The association reports 2025 was the third-best year for sales on record, and the increase in prices were especially pronounced in eastern Quebec. True driver of prices is lack of supply In Quebec City, the median price of a single-family home increased by 17 per cent and Saguenay, Que. saw an increase of 15 per cent. Declining interest rates, and 30-year-mortgages have helped sustain demand, but the true driver of prices is the lack of supply, according to Royal LePage broker Marc Lefrançois. “I would say anybody who owns a single family dwelling up to about $800,000 in and around the Montreal area are the people who have the most sought-after piece of asset,” he said. While it’s good news for people who own homes, for first-time home buyers, it’s another story. Lefrançois said many of his clients require help from family members and have to put up with longer commutes to get into the market. He said another trend is to purchase a multiplex that allows the owner to stay in the city and rent out other units to make the mortgage payment. “I have a lot of clients that are buying plexes in order to provide, eventually, housing for their kids. So that’s starting to be part of the culture, which we didn’t see before,” Lefrançois added. He said there’s been a noticeable shift toward home ownership in the last decade as rents start to increase. Home prices are expected to continue to rise into 2026, and the APCIQ’s Brant said urgent action is needed to build more homes in order to meet the demand. “We don’t have to stimulate the demand, but we have to stimulate the offer,” he said. “We have to stimulate the construction.” Lefrançois said while there is construction happening in the Montreal area, most of it is luxury housing or condominiums. “Either people will build these super big homes like they do in Brossard or condo towers, but very few reasonably sized homes,” he said. Until supply catches up with demand, Lefrançois said it will be a seller’s market for the foreseeable future.
