Vancouver asking rents rise for first time in almost three years as Bank of Canada hikes rate

Vancouver and Toronto have recorded their first rent increase in almost three years, according to a Rentals.ca and Urbanation report released Thursday. Across the country, the picture ran the other way: Canada's average asking rent was $2,036 in October, down 3.2 per cent from a year earlier, per the monthly Rentals.ca report.

That $2,036 covers all residential property types nationwide and is not a Vancouver figure. What the report does say is that rents in Vancouver and Toronto are moving up while the national number moves down.

For people in Metro Vancouver, the rent data lands in the same days as a Bank of Canada rate increase and a set of housing-market reports that point in several directions. Together they bear on tenants renewing leases, would-be buyers weighing a purchase, and anyone with a variable-rate mortgage.

New rental buildings: cheaper on average, but mostly empty

The rise in asking rents does not show up everywhere. In Lower Mainland buildings completed in the last five years, including privately owned rental condos, the average advertised rent slipped to $2,671 from $2,711. Within that newer stock, Vancouver Westside had the highest average advertised rent at $3,136.

Supply is a large part of that story. MLA Canada counted 1,001 market rental homes completed across six projects, the most in any month this year. Only 15 per cent of them had been leased in September. Another 780 rentals were due in October, with completions expected through 2027.

Sales in October: two boards, two different directions

The ownership market sent mixed signals in October, and the two regional boards cover different territory.

Greater Vancouver Realtors counted 2,024 sales, down 10.2 per cent from 2,255 a year earlier, with 15,688 homes listed for sale. The board's all-property benchmark price was $1.069 million. Its benchmark for detached homes stood at $1.775 million and for condos at $673,000.

The Fraser Valley Real Estate Board reported an all-property benchmark of $860,000. That was down 0.1 per cent from September and 6.4 per cent from a year earlier. Sales in the Fraser Valley rose 14 per cent month over month, to 1,051 from 922.

Separately, Zealty.ca data shows three of every four homes sold in Metro Vancouver and the Fraser Valley this year went for less than their assessed value.

GVR chief economist Andrew Lis said election coverage and uncertainty over mortgage rates contributed to both buyers and sellers stepping back in October.

A record-low half-year for new condo sales

New condos are where the numbers look weakest. According to Rennie figures, developers sold 1,340 new condos in Metro Vancouver in the first half of 2026, a record low. More than 14,000 new condo units were unsold at the end of June.

Presales, in which buyers commit to a unit before it is built, were also scarce. MLA Canada counted two presale launches across Metro Vancouver and the Fraser Valley in September, releasing 32 homes. That is about 96 per cent below the five-year average for the month.

Rennie analyst Ryan Wyse said the condo market is now a new home market rather than a pre-sale market.

What the 2.5 per cent policy rate means for borrowers

On Wednesday, the Bank of Canada raised its policy rate by 0.25 percentage points to 2.5 per cent, ending a year of holding at 2.25 per cent. Daily Hive described the decision as the first rate hike since July 2023.

The Bank pointed to the prolonged U.S.-led conflict in the Middle East, which has kept oil prices elevated and pushed up production and transportation costs. It expects inflation to reach about 3.5 per cent by the end of 2026 and to average three per cent in 2027.

Lenders adjust their prime rates in response to the Bank's moves, so homeowners with adjustable-rate mortgages will face higher monthly payments.

Both real estate boards cautioned that higher borrowing costs could undermine the affordability gains that lower prices offer. Lis had already named mortgage-rate uncertainty as one reason buyers and sellers pulled back in October.

Governor Tiff Macklem's announcement said the policy rate could need to rise further, but Governing Council agreed to proceed carefully. The next three rate announcements are scheduled for Dec. 9, 2026, Jan. 27, 2027 and March 3, 2027.