New listings in Greater Vancouver reached the second highest on record for the month of September. Three consecutive rate cuts from the Bank of Canada had the effect of spurring on increased inventory as opposed to demand, with buyers remaining cautious going into the fall market. Home sales declined 3.8% year-over-year, which continued to trend 26% below the 10-year seasonal average. This is the 5th straight month of declining sales in the region. GVR's director of economics and data analytics remains optimistic that sales will still result higher towards the end of 2024. The total number of properties available for sale is 14,932, around 24% above the 10-year average. The sales-to-active listings ratio is at 12.8%; 9.1% for detached homes, 16.9% for attached, and 14.6% for apartments.

The detached market in Greater Vancouver now has an 11-month supply, up from 10, while townhomes remain steady at 6 months, and condos have risen to 7 months from 6. Condo listings saw the largest jump, up 39% year-over-year, with detached homes up 24%. Detached sales have slowed significantly, pushing many areas into a buyer's market with over 10 months of supply.

In Vancouver's Westside, condos have the highest number of active listings since 2012, with 10 months of supply—likely attributed to strict rental legislation and short-term rental restrictions making them less attractive to investors. Meanwhile, Eastside condo sales are up compared to last month and last year, with only 5 months of supply. As October unfolds, election rhetoric and potential interest rate relief may distract buyers, but affordability remains a key talking point as regulations continue to restrict supply.

For those actively searching for a home, persistently high inventory is good news. The caveat is that some sellers are still anchored to peak pricing from past market highs. While more homes are hitting the market, if a deal looks too good to be true, it probably is—and others will likely think the same. We’re also seeing a pattern where homes that didn’t sell initially are being re-listed at significantly lower prices, enticing buyers into multiple-offer situations.

After several years of surging rental prices driven by inflation, the rental market is finally seeing some relief across multiple segments. The combination of a slowing economy, capped foreign student intake, and overleveraged landlords are all contributing factors. With the BC Government setting the 2025 rent increase limit to 3% (down from 3.5% in 2024), it’s clear that renters are seeing some short-term gains. However, many landlords—especially those operating cash-flow negative properties—are feeling the pinch, leading to decisions to sell into an already weak condo market.

In 2025, Immigration, Refugees, and Citizenship Canada will issue 437,000 study permits, reflecting a 10% reduction from the 2024 target of 485,000. This move, alongside a stabilization of intake caps for 2026, is expected to slow the pressure on rental demand driven by international students. But what does that mean for landlords?

Falling rents, combined with high mortgage costs, have left many over-leveraged landlords caught in a cash-flow negative situation. Some have even chosen to take their units off the rental market entirely, opting to move back into their properties. Unfortunately, others are hitting roadblocks, such as the tenancy branch rejecting requests to reoccupy their homes.

The Conservative Party has argued against rent control measures, stating that they stifle investment and are not a long-term solution to the housing crisis. As fewer units become available, homeowners are increasingly finding that there isn't enough incentive to rent out their properties.

Developers and Real Estate Investment Trusts (REITs) are also scaling back from the rental market. A heavy-handed approach to regulation has made it less attractive to invest in rental properties, and with developers shifting focus away from long-term rentals, supply could continue to dwindle.

While short-term rental bans were intended to push more units into the long-term rental pool, the impact hasn’t been as strong as expected. In fact, a recent report suggests there’s no direct correlation between the ban and the softening of rental rates. Instead, the highest rental apartment construction on record (as per CMHC) and a softening labour market are more likely to be driving factors.

In response to enforcement challenges, Vancouver has increased its short-term rental fines from $1,000 to $3,000 per day, and expanded the definition of a short-term rental to include stays of fewer than 90 days (up from 30 days). Yet despite these changes, many units are still being pulled off the market entirely, showing that restrictions aren’t necessarily leading to an increase in long-term rental stock.

In a B.C. NDP campaign event, Premier David Eby announced an agreement between the Province and the Musqueam, Squamish and Tsleil-Waututh First Nations that would offer 1-3 bedroom leasehold strata units at 60% of market value, with the government financing the other 40% to be paid back when the unit is sold or 25 years after the purchase date. 

The price ranges are between $372,000 to $780,000, and there will be screening on eligibility requirements with income thresholds according to unit size. The province's contribution is estimated to be about $670 million in loans.

In January 2023, the Provincial Government launched the Rental Protection Fund with a $500 million investment aimed at curbing speculation, preserving affordable housing, and protecting existing tenants from steep rent increases or displacement. So far, the Fund has spent $30 million on key rental housing projects, including Parkwood Gardens in Burnaby, Brookside Gardens in Maple Ridge, and 8820 Cartier Street in Vancouver.

Homeowners will no longer be subject to the mortgage stress test when switching lenders at renewal. The stress test is the higher of 5.25% or the contractual mortgage rate plus 2%. This policy change offers borrowers flexibility in shopping for a lower rate with a competitor, and only applies to uninsured mortgages.

Ottawa's proposed changes to mortgage policies aim to help renters enter the ownership market by removing price caps and extending amortizations. Starting December 15, insured mortgages will allow a 30-year amortization for first-time buyers and new home purchasers, up from 25 years. The price cap for insured mortgages will also increase to $1.5 million from the previous $1 million. Experts, however, warn that these reforms could impact home prices. As if by design.

Homeowners in the Lower Mainland will see a 9.9% increase in the regional services portion of their property tax bills next year, according to the Metro Vancouver Regional District (MVRD). While this portion is only a fraction of total property taxes, it is set to rise by an additional 5% in both 2026 and 2027.

Mike Hurley, chair of the Metro Vancouver Board, stated that the regional tax was initially projected to rise 14.1% in 2025, but a Financial Plan Task Force was created in 2023 to reduce the burden on households.