In mid-year, the time is up to the balance sheet. The construction of housing is more sustained in Quebec than elsewhere in Canada, but affordability remains an issue despite a slight drop in prices on a national scale. On the industrial side, the law of supply and demand has played its role and the market is favorable to tenants with rents requested to decrease.
Residential construction accelerates
Quebec is distinguished by its real estate dynamism, despite a drop in affordability. According to a report by Desjardins, the pace of start -ups joins that of Ontario. “For the first time since 1991, the average of start-ups in the last six months is even equal to Quebec and Ontario, despite a much larger population in Ontario,” said Maëlle Boulais-Préseault, senior economist at Desjardins, in the analysis published Thursday.
However, some shadows remain on the board. A drop in demand for housing – temporary, but well present – is expected due to lower demographic growth and a less favorable economic situation, notes the economist. In addition, the construction costs, already high, may further increase due to customs duties on American imports.
The resale market is supported by interest rate reductions, but the limited stock also leads to an increase in prices. In parallel, rents in the rental sector increase more quickly than wages, which exacerbates imbalances.
SCHL plans a price drop
The Canadian real estate market should always experience a slowdown in 2025, and dwellings should even experience a price drop of 2 %, according to the summer update of the housing market of the Canadian Mortgage and Housing Company (SCHL).
However, the affordability of housing remains a major concern. Trade tensions and uncertain economic conditions, but also a slowdown in population growth and an unemployment rise, are involved.
“We expect the conditions that stabilize more in 2026, as trade tensions will diminish, that mortgage rates will drop and demand will be slowly recovering,” concludes the SCHL, in the document.
Industrial real estate: a market to the advantage of tenants
The availability rate of industrial buildings in Greater Montreal is up for the tenth quarter in a row, and is now 5.8 %, reports the most recent CBRE report, at the end of the second quarter of 2025. This increase is especially noticed in large facilities, while inscriptions of 150,000 square feet and more monopolize the market and fade less quickly, pass on average 386 days on the market.
CBRE notes that growing demand in Greater Montreal has favored the development of tertiary submarits such as Beauharnois, Châteauguay and Salaberry-de-Valleyfield. The net rent requested continues to decrease, recording a 1.8 % drop for the sixth quarter in a row.
The second quarter of 2025 also saw a negative net absorption of 74,000 square feet, despite positive results in 18 of the 30 submarkets. On the other hand, the average requested sale price increased by 6.5 % for the second quarter in a row.
Megan Foy, The press
