The latest provincial analysis of rental housing in British Columbia reveals a noteworthy shift: asking rents across the province have been declining, signalling easing pressure in the rental market even as affordability remains a challenge.
Key Findings
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According to data released by Rentals.ca and Urbanation, the average asking rent in British Columbia has fallen by 8.5% over the past two years.
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Over the past year, the decline was approximately 5.5%.
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Major urban centres in the province are showing the most significant decreases — for example, the city of Vancouver led the country with a ~16.9% drop in asking rents over the two-year period.
Government Response & Context
Housing Minister Christine Boyle said the data reflect the impact of “unprecedented action” by the provincial government to expand housing supply, reduce speculation and control short-term rental conversions.
Programs and policy levers cited include:
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Record‐level rental housing starts in recent years.
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Efforts to reign in Airbnb/short-term rentals to preserve long-term stock.
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Enhanced tenant protections and rental-assistance supports.
What’s Driving the Decline?
Several factors are helping push asking rents lower:
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Increased supply: With new purpose‐built rental units coming on stream and conversion of short-term units to long-term stock, the pool of available rental homes is larger.
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Softening demand: Slower population growth, fewer newcomers, and rising vacancy rates reduce upward rent pressure.
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Regional overhang: In hot markets like Vancouver, previously high turnaround and high-rent units are facing competition and longer lease up times.
These themes are consistent with national data from the Canada Mortgage and Housing Corporation (CMHC), which noted that in major CMAs, advertised rents have already declined year-on-year by 2–8 % in some cases.
Implications for Renters
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For tenants: This is potentially good news. Less competition, slower rent growth (or even rent declines) may offer more negotiating power or time to secure favourable terms.
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But caution remains: While listed/asking rents are down, existing occupied rents may not yet reflect full reduction — tenants locked into older leases or renewals may still see higher payments.
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Also, while asking rents are dropping, affordability (rent as proportion of income) remains a concern in strong-market regions.
Implications for Landlords & Investors
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Landlords may face slower turnover, longer vacancy periods, or the need to offer incentives (e.g., first-month free) to attract tenants.
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Rising supply means owners of older or less-desirable stock may need to adjust rent, upgrade units, or market more aggressively.
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Investors should assess markets carefully: strong historical growth may not be a guarantee, and regional dynamics vary.
Regional Differences to Watch
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Metro Vancouver and nearby markets: Sharpest drops in asking rents suggest a more pronounced shift toward a tenant-favourable environment.
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Secondary markets / smaller cities: May not see the same magnitude of decline; supply/demand balance may differ.
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Rental type matters: Purpose-built rentals vs. strata‐units (condos) for rent may behave differently.
What’s Next?
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Monitoring whether the decline in asking rents translates into actual rents paid is key.
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Observing vacancy and turnover rates will give indications of when downward pressure stabilises.
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Policy impacts (tax, lending, rental regulation) and migration trends will continue to shape rental markets.
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For both renters and landlords: Stay informed about local sub-market trends rather than rely solely on provincial averages.
Bottom Line
The October 2025 rental market update for British Columbia points to a cooling trend in asking rents — a meaningful shift given the prior period of strong rent growth. For renters, this offers welcome relief; for landlords, it signals the need for proactive management. As always, local conditions matter much more than broad provincial averages.
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Imran Ali
The Ali Group
📧 [email protected]
📞 604-616-555
