Dimitris Ilias
LJI Journalist
Montreal’s escalating rent crisis is putting additional pressure on tenants, particularly in neighborhoods like Park-Extension, where affordability is becoming an increasing challenge. With steep rental increases and limited options, the city is advising residents to reconsider moving this year.
As the annual lease renewal process unfolds, landlords are required to notify tenants of any rent adjustments by March 31. Renters then have a month to respond. The city is emphasizing that tenants have the right to contest rent hikes and negotiate better terms. If an agreement isn’t reached, it falls upon the landlord to take the matter to the Tribunal administratif du logement (TAL), which will ultimately determine a fair rental rate.
This warning comes on the heels of a significant decision by the TAL, which recently approved an average rent increase of 5.9%—the largest annual jump in three decades. For those currently paying $1,000 per month, this means an added financial burden of $708 per year. However, the situation is far more severe for tenants looking for a new place, with data from the Canada Mortgage and Housing Corporation (CMHC) indicating that rental prices for vacated units surged by an average of 18.7% in the past year, compared to a 4.7% increase for lease renewals.
Park-Extension, historically a haven for low-income families and newcomers, has felt the effects of gentrification more acutely in recent years. The arrival of upscale housing developments and a shifting economic landscape have resulted in skyrocketing rents, making it increasingly difficult for long-time residents to remain in the area. With few affordable options available, housing organizations have expressed concerns over displacement and community fragmentation.
“The reality is that affordable housing in Montreal is becoming scarcer,” city officials stated. “For those contemplating a move, it’s advisable to start searching well in advance, as competition is fierce.”
While the city’s vacancy rate has edged up slightly to 2.1%, a considerable portion of available units consists of newly constructed high-end properties, leaving budget-conscious tenants with few viable choices. In Park-Extension, new buildings along streets such as Jarry and Beaumont feature significantly higher rental rates than traditional apartments in the area, pushing out many long-time residents.
Montreal offers support to individuals unable to find housing before their leases end. In July 2024, more than 1,500 households in the city were left without leases, according to the Société d’habitation du Québec (SHQ). Moreover, the Office Municipal D’Habitation De Montréal (OMHM) reported that as of December 27, 2024, over 14,000 families remained on the waiting list for social housing.
Residents of Park-Extension facing rental difficulties are encouraged to utilize city resources, such as the OMHM’s online database that provides a list of available units by size and price. Additionally, Vivre En Ville maintains a rental registry to help prospective tenants understand prevailing rental trends and costs.
Local advocacy groups like the Comité d’action de Parc-Extension (CAPE) continue to play a pivotal role in defending tenant rights, providing legal assistance, and advocating for greater rent controls to prevent further displacement. With rental costs rising and affordable units in short supply, many Park-Extension residents may find that staying in their current homes is the only viable option to maintain financial stability.