Renters in British Columbia appear to be holding off on buying a home despite lower interest rates and increased housing supply.
The 2025 Royal LePage Canadian Renters Report found that more than half of B.C. renters say they plan to buy a property in the future, but only 16 per cent say they plan to do it in the next two years.
For renters not planning to purchase a property, which was 26 per cent of those who responded, affordability is still the biggest issue.
Sixty-six per cent said their income will not allow them to buy a property in the neighbourhood they want to live in, 53 per cent said renting remains more affordable for them and 33 per cent said they don’t want to take on the responsibility of maintaining a home.
“The rental market looks very different today than it did a year ago,” Nina Knudsen, property manager with Royal LePage Sussex in North Vancouver, said in a statement.
“There is a surplus of inventory available, much like in the mainstream market. In fact, the slowdown in resale activity is having a knock-on effect in the rental market. Some property owners who weren’t able to sell their units, specifically condos, are choosing to list them as rentals instead.”
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She said that at the same time, as resale prices come down, more tenants are purchasing the units they have been renting.
“It’s a unique dynamic we’re watching unfold in real time,” Knudsen added.
“Despite ongoing affordability challenges, the goal of achieving home ownership remains a priority for many young people in the region.”
According to the latest National Rent Report by Rentals.ca and Urbanation Inc., the average price of a one-bedroom rental unit in Vancouver decreased 4.8 per cent year over year to $2,544 in May 2025, a modest 0.3 per cent increase over the prior month.
The average price of a two-bedroom rental unit in the city decreased 7.4 per cent year over year to $3,358, a decrease of 1.6 per cent month over month.
However, rent remains a significant portion of people’s incomes.
Thirty-six per cent of renters said they spend between 31 and 50 per cent of their net income on monthly rent, while only 28 per cent are spending 30 per cent or less.
Twenty-three per cent of respondents are spending more than 50 per cent of their income on rent.
Many people said they have reduced spending on groceries, reduced contributions to savings or retirement or taken on a second job to be able to afford rent.
“Overall, affordability in Vancouver’s rental market has improved over the last year, and it’s not unusual to see renters moving units because they’ve found a better deal,” Knudsen said.
“By and large, renters are in the driver’s seat today. But I do think we’ve reached the bottom of that opportunity.
“The biggest drop in rental prices is likely behind us. Looking ahead, I expect steady activity and price flattening for the foreseeable future.”
© 2025 Global News, a division of Corus Entertainment Inc.
