Rents Plunge $150 on Southern Vancouver Island: Urgent Update

UPDATE: Rents have dropped significantly on southern Vancouver Island, with the average cost for a one-bedroom apartment in Victoria plummeting to $2,013—a decrease of 2.5% from August and 7.5% from last year. This translates to a staggering $151 less than in September 2022, according to the latest National Rent Report from Rentals.ca and Urbanation.

The drop in rental prices comes at a critical time for many seeking affordable housing options. Two-bedroom apartments have also seen a decline, now averaging $2,651, down 1.5% from the previous month and 7.4% year-over-year.

“Supply is finally catching up to demand,” said Giacomo Ladas, associate director of communications with Rentals.ca. He cites an influx of rental properties and a softening demand due to increased first-time home buyers and a drop in international migration. Particularly in Victoria, the decline in international students has opened numerous rental units.

The trend is not isolated to Victoria. Across Canada, the average asking rent for all residential properties has decreased by 3.2% year-over-year, now standing at $2,123. This marks the 12th consecutive month of annual rent decreases, offering renters the most favorable affordability in two years.

“The most expensive markets in Vancouver and Toronto are experiencing their lowest rents in nearly four years,” stated Shaun Hildebrand, president of Urbanation. This significant shift follows a 38-month stretch of continuous rent increases that lasted until September 2024.

Despite this optimistic trend for renters, Ladas warns that previous highs in rental prices may not return soon. “Nobody right now is looking to buy a condo,” he noted, pointing to an 18.5% drop in condo sale prices in Victoria over the past year. “For the near future, prices are going to be a lot more favorable to renters.”

Prospective renters are encouraged to take their time searching for a property. “The amount of move-in incentives we’re seeing is the most we’ve seen in a very long time,” Ladas added. Many landlords are offering enticing deals, including one or two months of free rent and included utilities. Some are even providing cash incentives to attract tenants.

The B.C. government has responded swiftly to these developments, highlighting an 8.5% decrease in asking rents across the province over the past two years. “In the past two years, we’ve taken unprecedented action to deliver more homes for people and tackle speculation,” said Christine Boyle, B.C.’s Housing Minister. She emphasized that the government’s housing action plan is making a difference, with increased vacancy rates and consistent rent drops.

As the market continues to evolve, it is clear that the housing landscape in southern Vancouver Island is undergoing significant changes. The government’s efforts to reduce red tape and target speculative buyers are beginning to yield results, but Boyle acknowledged, “We know there is so much more to do to address housing costs for people.”

For those in search of rental properties, the message is clear: now is the time to act. With rents declining and incentives on the rise, this may be the best opportunity for renters in years. Keep an eye on this developing story as the rental market continues to adjust.