Jul 28, 2026
Follow us on Google for more Money.ca news
Add us on GoogleAfter several years of rising housing costs, many renters are already living on thin margins. Another rent increase could push some over the edge.
A new study commissioned by Centraide of Greater Montreal estimates that a 6% rent increase would push more than 30,000 people in the region into financial insecurity. Of those, more than 16,000 would fall into what researchers describe as “extreme precarity,” where even an unexpected expense could trigger serious financial hardship.
Advertisement
“Three years after Together for Housing was introduced, the situation is more urgent than ever,” said Tasha Lackman, president and CEO of Centraide of Greater Montreal, in a statement. “The impacts of housing costs are increasingly visible, with families being displaced, individuals pushed to the brink financially and workers unable to find a decent place to live.”
Thanks for subscribing!
The best of Money.ca delivered weekly.
By signing up, you accept Money.ca Terms of Use, Subscription Agreement, and Privacy Policy.
Why another 6% matters
On paper, a 6% rent increase may not seem dramatic. But the study argues that for households already spending much of their income on essentials, another increase of that size can have an outsized impact.
The scenario was chosen because it reflects the kind of increase renters have experienced in recent years. According to the report, Quebec’s Tribunal Administratif du Logement recommended average rent increases of about 4% in 2024, 5.9% in 2025 and 3.1% in 2026 — or a total increase of roughly 13.6% over three years.
Rather than examining a single rent hike in isolation, the report looks at what happens when costs continue to rise for households that already have very little financial flexibility.
Must Read
- Warren Buffett used these 4 solid, repeatable money rules to turn $9,800 into a $150B fortune. Here’s how to apply them to your own life
- Stop the leak: 5 costs Canadians (still) overpay for every single month. How many are sabotaging your 2026 budget?
- Three in four Canadians say their insurance premiums have increased in the last two years. Compare 20+ quotes on Rates.ca and save up to 20% when you bundle home and auto
Join 19,000+ readers and get Money.ca’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Rent pressure doesn’t stop at housing
The study suggests the consequences of rising rents extend well beyond paying more each month.
Households classified as being in ”extreme precarity” have little or no money left after covering essential expenses such as rent, food and electricity. That often forces difficult choices, including skipping meals, delaying bill payments, taking on debt, turning down the heat or putting off medical care.
Researchers also warn that sustained financial pressure increases the risk of housing loss and homelessness for some households.
Advertisement
According to the projections, the largest increases in extreme financial hardship would occur across 10 Montreal boroughs, including Ville-Marie, Le Plateau-Mont-Royal, Mercier–Hochelaga-Maisonneuve and Villeray–Saint-Michel–Parc-Extension.
Make your cash work harder. You can't control inflation, rates or market swings — but you can control where your cash sits. Compare high-interest savings accounts to keep your money working for you. Find the right HISA account
Looking beyond income tells a different story
One of the report’s main conclusions is that income alone doesn’t always capture whether a household is financially secure.
Instead, researchers used what they call a “precarity index,” which considers both income and essential expenses such as housing, food and utilities. The goal is to better identify households that appear financially stable based on income alone but have little room left in their monthly budgets once basic bills are paid.
To build the projections, researchers created a synthetic model of Greater Montreal covering 66 municipalities and simulated the effects of a 6% increase in rents. The model uses artificial intelligence to estimate how households with different incomes and expenses could be affected, without relying on identifiable personal information.
Although the findings focus specifically on Greater Montreal, they reflect a challenge facing renters throughout Canada. After several years of rising housing costs, even relatively modest rent increases can have a huge impact on households that are already stretching every dollar to cover basic needs.
You May Also Like
- This 7-step plan from Dave Ramsey is designed to help you ditch debt, save more and build wealth — here’s how it works
- Prioritize these 4 critical investments and watch your net worth skyrocket
- Focus on these 3 ‘magic numbers’ to become a millionaire — and only on these numbers. How do you stack up?
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
The most expensive financial mistakes are often the ones you don't see coming. Join 19,000+ Canadians who get the money moves, risks and opportunities shaping their finances — delivered free each week. Subscribe now.
Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
