24,000 New Units Flood Vancouver: The Multi-Family Market Just Flipped—Here’s What Buyers and Sellers Actually Need to Know

The Vancouver multi-family sector is undergoing a pronounced correction as nearly 24,000 rental units are expected to hit the market over the next two years, according to a Cushman & Wakefield ULC first-quarter report. This wave of supply—driven by record construction completions in 2025 and continued high deliveries in 2026—is creating acute leasing competition and pushing vacancy rates upward. David Venance, executive vice-president with Cushman & Wakefield, notes that while demand has not disappeared, it has failed to keep pace with the rapid inventory expansion, particularly affecting rent levels for new rental product that was underwritten during the pandemic when immigration and population growth projections were significantly stronger.

The imbalance is exacerbated by shifting demographic tides. British Columbia’s population dropped by over 41,000 people in 2025, while Canada-wide declines in temporary workers and international students have reduced the pool of potential renters. This demographic pressure coincides with rising loan-to-value ratios for some owners, with declining asset values pushing certain sellers toward near-100-per-cent LTV positions. In response, developers are increasingly offering incentives to fill units and support rent rolls. Greg Ambrose, vice-president with Colliers Canada, characterizes the current environment as a distinct buyer’s market in an asset class that has historically favored vendors, though he notes that housing starts have fallen significantly—a factor that could tighten supply again within 24 months if development activity remains subdued.