Those on the hunt for an apartment in Victoria may walk away with a few more dollars in their pocket than they would have had a year ago.
The latest National Rent Report from Rentals.ca and Urbanation shows the average rent for a one-bedroom in Victoria was $2,013 in September, a drop of 2.5% from August and 7.5% from a year ago. That translates to a $151 decrease in rent over the past year.
Two-bedroom rents in Victoria slid 1.5% over the past month to $2,651, a 7.4% decline over the past year.
"We were seeing a prolonged period where supply was not able to catch up to demand, and now it is," said Giacomo Ladas, associate director of communications with Rentals.ca.
He attributes that to more rentals coming onto the market, combined with a softening demand created by an increase in first-time home buyers and a decline in international migration. That drop is more pronounced in cities like Victoria, where a massive decline in international students has opened up more rental units.
Ladas also pointed to the near-zero interest rates at the beginning of the decade that led to many developers purchasing properties for resale. "Those condos are now being put up for rent."
Victoria is not alone in seeing falling rents. The average asking rent for all residential properties in Canada declined 3.2% year-over-year in September to $2,123, marking the 12th consecutive month of annual rent decreases.
“Renters in many parts of Canada are experiencing the best levels of affordability in two years, with the most expensive markets in Vancouver and Toronto seeing rents at their lowest in nearly four years,” said Shaun Hildebrand, president of Urbanation.
The national decline follows a 38-month stretch of rent increases between August 2021 and September 2024, and represents the first two-year decline in average asking rents since January 2022.
But Ladas doesn't expect rents will return to those previous highs anytime soon.
"Nobody right now is looking to buy a condo," said Ladas, pointing to the softening condo market that has seen sale prices drop 18.5% in Victoria over the past year.
"For the near future, prices are going to be a lot more favourable to renters."
His advice to those in search of a place to rent: Take your time looking, and you might be surprised by some of the deals you find.
"The amount of move-in incentives we're seeing is the most we've seen in a very long time," said Ladas.
He said renters are being offered one or two months free rent, or having utilities included in the rent. "Some are even offering cash."
The B.C. government was quick to hop on the latest report, pointing to the 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. Our housing action plan is having an impact, with vacancy rates rising and asking rents consistently dropping," said Housing Minister Christine Boyle in a release.
She said B.C. has seen a record number of rental housing starts over the past three years, and points to the government's actions to cut red tape, target speculation buyers and rein in runaway short-term rentals.
"We know there is so much more do to address housing costs for people. That is why we need to stick to our plan."
