Vancouvers rental market is really changing. You are not imagining things. For years people have been competing with each other to rent a place. The rents have been very high.. Now Vancouvers rental market is going through a big change. 24,000 New rental units will be available in the next two years. This means there will be a lot of places to rent and it will be harder for landlords to find tenants.
The construction of buildings is happening very fast. In 2025 and 2026 many new buildings will be completed. This is making it harder for landlords to increase the rent. In fact the rent is going down. This is news for people who are looking for a place to rent. It is not good news for investors who own rental properties.
The Numbers That Explain Everything
Lets look at the numbers. The vacancy rate in Vancouver is now 3.7 percent. This is the highest it has been since 1988. A few years ago the vacancy rate was very low almost 0.9 percent. What changed? Well many new buildings have been. This has added a lot of new rental units to the market. Also fewer people are moving to Vancouver because of changes in immigration policies. In 2025 the population of British Columbia actually decreased by over 41,000 people.
Because of this the rent in Vancouver has gone down by 9.2 percent. Landlords are trying to attract tenants by offering one to two months of rent. This is a change from just a few years ago. New rental buildings that were built during the pandemic are having a time finding tenants. David Venance of Cushman & Wakefield said, “This is a change after a period of very high demand it’s not a sign of a weak market”.
The Supply Pipeline: What's Coming and When
Its good to know whats happening in the market. 24,000 New rental units will be available in the next two years. Most of these are apartment buildings and many of them are in expensive areas. The Canada Mortgage and Housing Corporation says that the vacancy rate is highest in buildings, where landlords are offering incentives to attract tenants. It may take a years for the market to absorb all the new units and its unlikely that the rent will go up until 2028.
There’s good news for investors. The number of buildings being constructed is going down. This means that in the future there will be fewer new rental units available. When people start moving to Vancouver the market may change quickly. Greg Ambrose of Colliers Canada said, “In two years we may be surprised by how the rental market changes with fewer new buildings and possibly new government policies to increase the population”.
The Divergence: New Buildings vs. Legacy Assets
One important thing to note is that new buildings and old buildings are doing differently in the market. New buildings are having a time finding tenants. Investors are being careful. Want higher returns on their investment. The value of buildings is going down and some sellers are having to borrow a lot of money to buy them.
On the hand old buildings are doing better. The Canada Mortgage and Housing Corporation says that the market is still strong for buildings, especially the ones with low rent. Tenants are looking for deals and old buildings offer that. When you’re thinking of investing in the market this is an important thing to consider. New buildings may have amenities but they’re having a hard time finding tenants. Old buildings may not have all the amenities. They’re more stable and offer a better return on investment.
Why This Is a Buyers Market
For investors this change in the market is an opportunity. “For investors it’s now a buyers market in an asset class that has traditionally favoured sellers ” Ambrose said. What does this mean? There are buildings for sale and sellers have to compete with each other on price. Investors can get a deal and the return on investment is higher. Most of the buyers are investors and they’re being careful and disciplined. They’re finding deals that weren’t available a few years ago.
The MLI Select Advantage for Multi-Family Investors
If you’re looking at buildings with five or more units the Canada Mortgage and Housing Corporation has a program called MLI Select. This program offers financing terms that can change the economics of investing in rental properties. You can borrow up to 95 percent of the price. You can pay back the loan over 50 years. The interest rate is around 4.25 to 5.00 percent, which’s lower than other loans.
To get the deal you need to score 100 points on the Canada Mortgage and Housing Corporations scale. You can get points for making the building more affordable energy-efficient and accessible. For investors who are buying buildings MLI Select can help improve cash flow and reduce the amount of money you need to invest. In a market where every dollar counts this program can make a difference.
Where the Opportunities Are
Based on whats happening in the market here are the opportunities for investors. Buildings that need renovation and have low rent offer a chance to make money. For example The Maples, a 38-unit building in Marpole has rent thats 23.51 percent below market. By renovating the units and increasing the rent investors can increase their income and the value of the property. Old buildings in locations are more stable than new construction and offer immediate cash flow.
The suburbs like Surrey offer cash flow and lower prices. Other areas, like Burnaby, Coquitlam and Langley offer opportunities with potential for renovation and strong demand for rent. Purpose-built rental projects with MLI Select financing can change the economics of investing in properties.
Conclusion
Vancouvers rental market is going through a change. 24,000 New units, a 3.7 percent vacancy rate and falling rent have made it easier for people to find a place to rent.. For investors who can look beyond the headlines this change represents a good opportunity.
As one expert said, “Demand hasn’t disappeared its just not keeping pace with supply”. The number of buildings is going down and when people start moving to Vancouver again the market may change quickly. For investors who can be disciplined the market offers a chance to buy assets at a price use MLI Select financing and get ready for the eventual recovery. The great Vancouver rental reset is here. Are you ready to take advantage of it?
Frequently Asked Questions (FAQs)
24,000 new rental units will be available in Metro Vancouver in the next two years. Record construction completions in 2025 and deliveries in 2026 are pushing down rent growth.
Metro Vancouvers purpose-built vacancy rate is 3.7 percent, the highest since 1988. This is up from 1 percent in previous years.
Yes. The rent in Vancouver has gone down by 9.2 percent. Landlords are offering one to two months of free rent to attract tenants.
There are buildings for sale and sellers have to compete with each other on price. Investors can get a deal and the return on investment is higher. Private investors are finding deals that weren't available a few years ago.
MLI Select offers up to 95 percent loan-to-value financing and 50-year amortization for buildings, with 5+ units. This can improve cash flow. Reduce the amount of money you need to invest.
Meaningful rent growth is unlikely to resume until 2028. However the number of buildings is going down and when people start moving to Vancouver again the market may change quickly.
Co-Founder & Director
Hafil Perincheeri is an engineer-turned-realtor, investor, and builder based in Calgary, Canada. As Co-Founder and Director of Greencasa, he specializes in home flips, property development, and investment strategies. Since 2019, he has guided clients in home buying, multifamily investing, and financing options like CMHC and MLI Select, ensuring transparent, informed decisions.