Quebec City’s rental market is experiencing a perfect storm of conditions that savvy real estate investors dream about: surging demand, limited supply, rising rents, and strong long-term fundamentals. For those considering income property investments, Frederic Murray and his team at Groupe Murray have identified five compelling reasons why Quebec City’s rental market deserves serious attention from investors in 2025.
1. Record-Low Vacancy Rates Create Consistent Demand
The numbers speak for themselves. Vacancy rates across Quebec City remain at historic lows, with some neighborhoods experiencing near-zero availability. This isn’t a temporary phenomenon—it reflects a fundamental imbalance between housing supply and population demand that has been building for years.
According to Groupe Murray‘s property management data from their 200+ unit portfolio, quality rental properties are being leased within days of becoming available. In many cases, prospective tenants are competing for the same unit, allowing property owners to be selective about who occupies their investment.
This tight market creates stability for investors. Empty units represent lost income, but in Quebec City’s current environment, vacancy risk is minimal. Properties generate consistent cash flow month after month, year after year.
2. Rental Rates Are Climbing Significantly
The Administrative Housing Tribunal’s recommended rent increase for 2025 stands at 5.9%—a substantial jump that reflects both inflation and the severe shortage of available housing. While recommendations vary by individual circumstances, the overall trend is clear: rental income is rising at rates that outpace many other investment vehicles.
Frederic Murray notes that well-maintained properties in desirable locations often command even higher increases, particularly when improvements or renovations justify premium pricing. The combination of rising rents and low vacancy creates a powerful income growth scenario for property owners.
For investors running the numbers, a 5.9% annual increase in rental income significantly improves cash-on-cash returns and accelerates mortgage paydown. Over a five to ten-year holding period, this compounding effect becomes substantial.
3. Property Values Continue Strong Appreciation
While rental income provides immediate returns, property appreciation builds long-term wealth. Quebec City’s real estate market has demonstrated remarkable price growth, with single-family homes appreciating 21% year-over-year and multi-unit properties showing double-digit gains across most neighborhoods.
Groupe Murray‘s investment properties have benefited from this appreciation trend, with the company’s portfolio value increasing significantly over the past several years. Unlike speculative markets where prices fluctuate wildly, Quebec City offers steady, predictable growth driven by genuine demand fundamentals.
The combination of rental income and property appreciation creates a dual return stream that few other investments can match. An investor purchasing today benefits from immediate cash flow while the underlying asset grows in value—building equity with every mortgage payment and market appreciation cycle.
4. Quebec City’s Economic Stability Reduces Investment Risk
Real estate investment always carries risk, but Quebec City’s diversified economy significantly mitigates many common concerns. The city’s strong public sector presence, thriving technology industry, robust tourism sector, and growing small business community create multiple pillars of economic support.
Unlike cities dependent on a single industry, Quebec City demonstrates resilience during economic downturns. Even during recent periods of national economic uncertainty, the city’s real estate market has remained strong. Mortgage arrears in Quebec remain well below the national average at just 0.19%—the second-lowest rate in Canada.
Frederic Murray emphasizes that this stability matters enormously for long-term investors. Rental properties perform best when the local economy supports consistent employment and population growth. Quebec City delivers both.
5. Strategic Portfolio Diversification Across Prime Locations
Smart investors understand that location drives returns. Quebec City offers diverse neighborhood options, each with distinct characteristics and investment profiles. From the tourist-rich historic quarters of Vieux-Québec to the family-oriented suburbs of Charlesbourg, investors can build portfolios tailored to their risk tolerance and return objectives.
Groupe Murray‘s approach demonstrates the power of strategic diversification. The company’s portfolio spans multiple neighborhoods and property types—residential apartments, commercial spaces, heritage buildings, and modern developments. This diversification smooths returns and reduces concentration risk.
Neighborhoods like Saint-Jean-Baptiste offer strong rental demand from young professionals and students. Areas like Sainte-Foy attract families seeking quality schools and amenities. The Vieux-Québec commands premium rents due to its unique character and central location. Each area serves different tenant demographics, creating a balanced investment strategy.
The Groupe Murray Track Record
Theory matters, but results matter more. Groupe Murray has built a portfolio of over 200 rental units across Quebec City over nearly two decades—a testament to both the market’s strength and the company’s expertise in identifying and managing profitable properties.
This portfolio includes properties ranging from intimate 3-unit buildings to larger 13-unit complexes, from heritage stone structures in Old Quebec to modern developments in growing suburbs. The diversity reflects a deep understanding of how different property types perform under various market conditions.
Frederic Murray and his team’s long-term commitment to Quebec City real estate demonstrates confidence in the market’s fundamentals. They’re not flipping properties for quick profits—they’re building and holding assets that generate consistent returns year after year.
Taking Action in a Competitive Market
For investors ready to enter Quebec City’s rental market, timing matters. Properties are selling quickly, often with multiple offers. Success requires preparation: financing pre-approval, clear investment criteria, and the ability to analyze deals quickly and accurately.
Working with experienced local professionals who understand neighborhood dynamics, tenant demographics, and property management requirements gives investors a significant advantage. Groupe Murray‘s two decades of market experience provides insights that newcomers simply cannot replicate through research alone.
The fundamentals driving Quebec City’s rental market—low vacancy, rising rents, property appreciation, economic stability, and strategic location diversity—create an exceptional environment for real estate investors. For those willing to do their homework and commit to long-term ownership, the opportunities are substantial.
Frederic Murray leads Groupe Murray, a Quebec City-based real estate company with over 200 residential and commercial units. For investment inquiries, visit groupemurray.com
