Vancouver Multifamily Market Report

Record level of immigration underpins rental demand. Availability in Vancouver’s multifamily sector tightened to an extremely low level in 2022. The metro’s vacancy rate fell to 0.9 per cent, with some neighbourhoods — including University Endowment Lands and Southeast Vancouver — at practically full occupancy. A surge in borrowing costs and resident inflow led to apartment demand outpacing inventory growth, which lifted the metro’s average effective rent 8.3 per cent above the 2021 level, the highest rate of increase since 1991. This year, highly-indebted households in Vancouver will likely be the main factor weighing on the metro’s economy through subdued consumer spending, which will subsequently reduce apartment demand. Nevertheless, Vancouver is on track to welcome a record number of immigrants this year. This should support the metro’s overall rental need, as most of these new settlers tend to start their lives in Canada as renters.