Written by Crosbie DesBrisay
Metro Vancouver Multifamily, 2025 Recap and 2026 Outlook
Introduction
The Metro Vancouver multifamily market continues to stand out as one of the most resilient and supported real estate asset classes in Canada. Despite a challenging macroeconomic backdrop over the past two years, apartment buildings have remained anchored by long term demand. For investors, 2025 represented a year of recalibration and opportunity, where disciplined pricing, improving financing
conditions, and rental demand combine to create a more defined investment landscape heading into
2026.
Market Overview and Transaction Activity
2025 was a year of valuation realignment and selectivity on transactions rather than strong volume.
Market coverage shows slower transactions and softer activity compared to previous cycles.
Rental and sales markets in Vancouver are showing changes in key variables that impact underwriting,
including less intense rent growth and higher vacancies than seen in prior years.
Rental Market Fundamentals
CMHC’s 2025 rental market data indicates a notable shift in vacancy conditions, with Greater Vancouver’s purpose-built rental vacancy rate rising to 3.7%, one of the highest levels in decades. This
represents a significant increase from the 1.6% vacancy rate reported by CMHC for Vancouver in 2024.
Data from private rental listings also point to rent softening through 2025, with broad year-over-year
declines in advertised rents reported across Metro Vancouver
For multifamily owners, the impact depends on financing structure. Properties with floating or prime-based debt, including bridge or construction loans, benefit immediately through lower interest costs, reducing annual carrying expenses and improving cash flow. Owners with fixed financing will see no immediate change. However, borrowers approaching a renewal or looking to purchase have already begun to partially benefit. The adjustment has been reflected in bond yields, as anticipation of the cut has lowered yields throughout the month. Overall, borrowing has become more affordable, supporting investment opportunities in the multifamily sector.
