Rental Rates Continue To FALL In Metro Vancouver

Just over a year ago, Vancouver’s rental market was on fire. Rents were rising at record pace, showings were fully booked within hours, and competition was fierce. Fast forward to today, and it’s a very different story. Properties that used to rent in a single day are now sitting on the market for months. Rents are softening, vacancy is creeping up, and investors—especially small-scale landlords—are starting to feel the pressure.

In this episode, we explore the major shift in Vancouver’s rental market, digging into the economic forces and real estate dynamics that got us here. From high interest rates and inflation-fighting policies to rising construction costs and tariff threats, we break down how macroeconomic conditions have trickled down into a rental environment that’s finally showing signs of balance—or at least a pause.

We take a closer look at the impact of newly completed, purpose-built rental buildings and how they’re changing the game for mom-and-pop investors. In 2024 alone, over 17,900 new rental units have been registered—representing 44.4% of all new housing starts in BC. As these larger, professionally managed buildings come online, they offer better amenities, stronger tenant protections, and often more aggressive pricing and incentives to fill vacancies quickly. This puts significant pressure on individual condo landlords, many of whom now have to drop rents or risk sitting vacant for months.

We share real-world examples that paint a clear picture of this market shift. A 1,000 square foot, two-bed plus den in Yaletown that rented in just one day in 2022 for $3,500 is now listed at $3,400, has sat on the market for over 80 days, and may lease at $3,300—a 6% decline. A one-bedroom unit in Coquitlam that rented in 2 days for $2,300 in November 2023 just leased for $1,900 after 93 days and 33 showings—a 17% drop. Average days on market have risen from 32 to over 43 in the past year, and many units are receiving less than one showing per week.

This episode unpacks what all of this means for renters, landlords, and investors alike. The balance of power may be shifting toward tenants, with more options, lower prices, and better negotiating power than they’ve had in years. At the same time, investors are being squeezed by rising holding costs, taxes, and a softening rental environment. Even as mortgage rates show signs of easing, the gap between expenses and income is widening for many who purchased recently using high leverage.

We also examine whether purpose-built rentals are truly improving affordability, or simply creating a new class of high-end rental stock. While many of these buildings offer cost efficiencies, lower maintenance, and no risk of eviction due to landlord use or sale, they often come with premium finishes and luxury amenities that keep monthly rents high. Still, their existence could free up more condo units for first-time buyers and shift tenant demand in a meaningful way.

Whether you're a tenant looking to time your move, a landlord wondering how to stay competitive, or an investor rethinking your long-term strategy, this episode brings clarity to a rapidly evolving market. We break down what’s happening now, what’s likely coming next, and what you can do to stay ahead of the curve in Vancouver’s changing rental landscape.

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Dan Wurtele, PREC, REIA

604.809.0834

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Ryan Dash PREC

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www.thevancouverlife.com