The annual rental report from Canada Mortgage and Housing Corporation (CMHC) shows overall vacancy rates increased this year in major cities in British Columbia.
The 2025 report released last week said vacancy rates in the Greater Vancouver area surpassed expectations and saw their highest levels in over three decades.
CMHC said slower population growth due to federal restrictions on temporary workers and students have softened demand for rentals.
“B.C. saw 3 consecutive quarters of outflow of non-permanent residents, most of whom were renters. With migration expected to remain lower, vacancies may stay higher in the short term,” said the report.
The report also pointed to higher youth unemployment and slow wage growth, saying more young professionals are co-living with roommates or parents.
Vancouver’s vacancy rate for purpose-built rentals was 3.7 per cent. The average price for a two-bedroom rose 2.2 per cent to $2,363.
The vacancy rate was lower for condominium apartments at 1.5 per cent, with the average price for a two-bedroom condo at $2,900.
While rental supply growth was concentrated in Vancouver, surrounding cities also saw strong increases. The report said Coquitlam saw 20-year high increases, and Burnaby reversed a five-year downward trend.
CMHC said Victoria’s vacancy rate exceeded even forecasted historic highs. The provincial capital’s overall vacancy rate rose to 3.3 per cent – the highest level since 1999.
“Victoria faces similar demographic trends to Vancouver with outflows of international migrants and students, but to a lesser degree. A weak labour market for younger people reduced rental demand,” said the report.
It said rent growth in Victoria sped up in 2025, due to higher turnover.
The average rent for a two-bedroom purpose-built apartment was up more than five per cent to $2,120.
B.C.’s Housing Minister Christine Boyle said the higher vacancy rates show the province’s housing initiatives are paying off for renters.
She points to policies aimed at speeding up development approvals, regulating short-term rentals and cracking down on speculators.
“These results show that our housing initiatives are paying off for renters,” said Boyle.
“Through our short-term rental rules, thousands of homes have returned to the long-term rental market, an important factor that is helping to drive these promising results and helping to ensure that new units that are built are available as permanent homes and not diverted to the short-term rental market,” she said.
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