Vancouver Multifamily Market Report

Strong demand remains unmitigated. In the first half of 2023, Vancouver’s multifamily vacancy rate remained stable below 1.0 per cent. Healthy population growth from immigration within this period was the main driver for the metro’s apartment demand. Furthermore, the Bank of Canada paused interest rate hikes between February and May, resulting in a sharp increase in home prices as many buyers returned from the sidelines as uncertainty showed signs of abating. This further reduced home affordability and led to more housing demand spilling over to the multifamily sector. For the remainder of 2023, a continued inflow of new residents and elevated mortgage rates will likely keep apartment demand heightened. Rents, as a result, will increase to a post-pandemic high, likely approaching $1,800 a month.