Vancouver Housing Market Trends 2025

The year 2025 marked a turning point for Vancouver’s housing market, particularly in the multiplex segment. After years of policy reform and market adjustment, the city’s housing landscape is fundamentally different from what it was even three years ago. Here’s what happened and what it means for 2026.

The Big Picture

Vancouver’s overall residential market saw moderate price growth in 2025, with the benchmark price increasing 4.2% year-over-year. However, the story beneath the headline number reveals significant shifts:

• Detached homes: +2.8% (slowest growth in five years)
• Condos: +3.5% (steady demand from first-time buyers)
• Townhomes: +5.1% (strong demand for family-sized homes)
• Multiplex units: +7.3% (fastest-growing segment)

The multiplex segment outperformed every other housing type in 2025, driven by a combination of new supply, favourable policy, and strong buyer demand.

Supply: The Multiplex Boom

The most dramatic change in 2025 was the surge in multiplex construction:

• Building permits: 1,840 multiplex units permitted (up 62% from 2024)
• Construction starts: 1,420 units (up 48%)
• Completions: 680 units (first significant wave of post-Bill 44 projects)
• Pipeline: Over 3,200 units in various stages of development

Where the Building Is Happening

The top neighbourhoods for multiplex development in 2025:

1. Hastings-Sunrise: 285 units permitted
2. Renfrew-Collingwood: 240 units permitted
3. Marpole: 195 units permitted
4. Killarney: 165 units permitted
5. Kensington-Cedar Cottage: 150 units permitted

Demand Drivers

Affordability Gap

The average multiplex unit in Vancouver sold for $695,000 in 2025, compared to $1.85M for a detached home. This 62% discount makes multiplexes the most accessible path to homeownership with ground-oriented living.

Lifestyle Preferences

Surveys of multiplex buyers reveal key motivations:

• 68% cited “owning a home with a yard or outdoor space” as the primary driver
• 54% wanted to be in a specific neighbourhood that was previously unaffordable
• 41% valued the community feel of smaller buildings
• 38% were motivated by investment potential

Interest Rate Environment

The Bank of Canada’s rate cuts in 2025 (from 4.5% to 3.75%) improved affordability and unlocked demand that had been sidelined during the rate hike cycle.

Rental Market Impact

The growth in multiplex supply is having a positive impact on Vancouver’s rental market:

• Secondary rental units (multiplex rental suites): 480 new units added in 2025
• Average rent for multiplex rental: $2,350/month for a 2-bedroom
• Vacancy rate in multiplex rentals: 1.8% (vs. 0.9% for purpose-built rental)
• Investor-owned multiplex units: Approximately 28% are rented out

Price Analysis by Area

Neighbourhood	Avg. Multiplex Price	Price/sqft	YoY Change
Kitsilano	$895,000	$920	+8.1%
Hastings-Sunrise	$685,000	$760	+7.5%
Marpole	$650,000	$740	+6.8%
Renfrew-Collingwood	$640,000	$730	+7.2%
Killarney	$620,000	$710	+6.5%

What to Watch in 2026

Municipal Permitting Speed

The City of Vancouver has committed to reducing multiplex permitting timelines to 12 weeks. If achieved, this will accelerate supply and moderate price growth.

Federal Housing Programs

New federal incentives for purpose-built rental multiplexes could shift the investment calculus significantly.

Construction Costs

Material and labour costs stabilized in late 2025 after three years of escalation. If this trend continues, developers will be able to offer more competitive pricing.

Transit Expansion

The Broadway Subway completion (expected 2026) will create new demand hotspots in the Fairview and South Granville corridors.

Key Takeaways

1. Multiplex is the fastest-growing housing segment in Vancouver and shows no signs of slowing
2. Supply is catching up but demand continues to outpace available inventory
3. Prices are rising but remain accessible relative to other ground-oriented housing
4. The rental market for multiplex units is strong, supporting investment strategies
5. Location matters more than ever — proximity to transit is the primary price driver

The multiplex revolution in Vancouver is well underway. For buyers and investors, the key is to act decisively while the market is still in its early growth phase.