Vacancy Rates in Victoria Hit Highest in Decades

Capital Region Sees Big Rise in Vacancy

New data shows rental vacancy rates in the Victoria area climbed to 3.3 per cent in 2025, the highest level recorded in the region since 1999. That shift marks a significant change in a market that had long struggled with tight availability and rising rents. 

The Canada Mortgage and Housing Corporation’s 2025 Rental Market Report points to several key factors behind the increase, including a combination of higher rental supply and slower demand driven by demographic trends such as declines in international students and immigration flows. 

What the Numbers Mean for Renters

A vacancy rate above three per cent is generally considered healthier for renters because it gives more options and reduces competition for available units. The latest data indicates that purpose-built rental stock growth in downtown and surrounding areas helped push up the overall vacancy level. 

This shift has also coincided with broader trends in Canadian rental markets, where national vacancy rates climbed to around 3.1 per cent in 2025, partly due to increased construction and slower net migration. 

Rents and Supply Trends Alongside Vacancy

Despite the rise in vacancy, the report also notes that average rents for some purpose-built rentals in Victoria increased by about 5.1 per cent, a pattern tied to turnover dynamics and stronger demand for certain unit types even as overall availability improved. 

Analysts say the vacancy uptick reflects a market in transition, with new units coming online and fewer renters seeking housing under current conditions. That combination appears to be easing pressure on what has historically been a very tight rental market. 

Outlook for Future Housing Conditions

Experts caution that while rising vacancy rates offer some relief, there is still a need for more affordable and well-located rental housing to meet long-term demand, especially as the region continues to grow. More supply and policy support are likely needed to ensure continued improvements in affordability and choice for renters. 

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