Vancouver Rents Rise 0.6% in October, Ending 34-Month Decline
Vancouver Rents Rise 0.6% in October, Ending 34-Month Decline
Vancouver’s rental market has recorded its first annual price increase in nearly three years, with average asking rents rising 0.6% in October to $2,754. The shift ends a 34-month period of deflation, driven primarily by tightening supply and increased demand for larger units.
Vancouver’s rental market has ended a prolonged period of deflation, recording its first annual price increase in nearly three years. According to the latest National Rent Report released jointly by Rentals.ca and Urbanation, average asking rents in the city rose 0.6% year-over-year in October to reach $2,754.
The shift marks a significant turning point for Canada’s largest housing market, which had seen rents decline for 34 consecutive months. The trend mirrors developments in Toronto, where average rents also increased by 1.3% compared to the same period last year. Shaun Hildebrand, president of Urbanation, noted that the window for cheaper rents is closing in both cities.
Giacoma Ladas, communications director for Rentals.ca, attributed the upward pressure primarily to a tightening supply of available listings. "There are fewer available listings coming onto the market, and that reduced inventory is putting upward pressure on asking rents," Ladas said in an email response to Daily Hive Urbanized.
However, the overall average increase masks divergent trends across unit types. While larger units drove the monthly gain, prices for smaller apartments remain below year-ago levels. The average asking rent for a one-bedroom unit in October was $2,377, representing a 0.1% increase from September but a 3% decrease compared to October of the previous year. Two-bedroom units saw no change month-over-month or year-over-year, holding steady at an average of $3,270.
The recent volatility in Vancouver’s housing market follows a period of unprecedented population growth that outpaced supply due to a decades-long undersupply of purpose-built rentals. Rents peaked in September 2023 at an average asking price of $3,335 before softening as the federal government implemented measures to limit population growth and incentivize new construction.
Looking ahead, the trajectory of Vancouver’s rents remains uncertain. Ladas indicated that while continued declines in supply could support further rent growth, the seasonal slowdown typical of fall and winter may moderate the pace of increases in the coming months. Meanwhile, renters in other major Canadian hubs such as Calgary, Edmonton, and most of Ontario outside of Toronto continue to experience declining rental costs.
B.Ernst--BVZ
